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Book Nail
Hayek and 20th Century Economic Thought, by David Henderson (Econlog)
How important is the work of Friedrich Hayek in 20th-century economic thought?
David Warsh has written an excessively nasty piece on that, which doesn't mean
it contains no kernels of truth. Alex Tabarrok has written a defense of Hayek
which is closer to the truth than Warsh's piece. Russ Roberts and Pete Boettke
have also written important thoughts about this that I largely share. Rather
than go through point by point about where I agree or disagree with the
various players, I refer you to my recent review of Nicholas Wapshott's book,
_Keynes Hayek: The Clash that Defined Modern Economics_.
Some highlights from my review:
On Hayek's non-participation in the contemporary debate about Keynes's
_General Theory_:
> Wapshott writes that Keynes "went out of his way to invite Hayek's
criticism," even sending Hayek advance copies so that Hayek could publish his
critique by the time the book was released. Why? Writes Wapshott: "Keynes was
a master publicist and knew the value of courting controversy."
And how did Hayek respond? He didn't. As Wapshott puts it, "Hayek declined to
enter the ring." Much later, Hayek would say that this was a "failure for
which I have reproached myself ...
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