February 23, 2020

ECLECTICS:WHAT DID WE LEARN FROM KEYNES?PART 26

And obscurity,he went back to the theory and used them as point of defense in 1930s.He was later awarded a nobel in economics in the 70s,for the contribution he made to business cycle theories in the fields of economics.Hayek later returned to Friedman his friend and rival and reexamined Ropke's case with special treatment concluded and finally rejected the position.For goodness,why did Hayek change his mind,upon consultation with Friedman?Methink,Keynes ideas was truly revolutionary and unparallel.Hayek's business cycle theory posit that unsustainable boom defined by the lengthening of capital structure can be generated by a loose monetary policy stance.Still its nebula had refused to ebb among economists,due to empirical disconfirmation,with the intention to graft it with eclectics of keynesianism or monetarism to make it relevant to mordern macroeconomics.Both economists detested empiricist approaches to economics with priority assignment to mere observation as cardinal source of knowledge.Both also placed

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