Publication
The Korean Journal of Economic Studies
Uncertainty, Rationality and Intervention: Keynes and Hayek
Jaehong Hwang(Mokwon University)Year 2011Vol. 59No. 4
Abstract
Both Keynes and Hayek focused on knowledge, uncertainty and convention, but lead to different conclusions on government intervention. The paper aims to show that Keynes and Hayek sharply disagreed when considering the relationship between conventional individual actions and the social consequence of these actions. Both thought that conventions are useful guides for individuals, but Keynes stressed their negative social effect. The contrasts explain their different views on economic policy.