Business cycles: phases, indicators, measures, economic evolution, outlooks - Research Paper Example

eciate, that Hayek and Keynes represents the ending of the entire continuum while, in practice, the market-oriented societies (like the United States) have truly "mixed economies," with governments having a minimal and substantial role. With Hayek, less intervention by the government means increased economic freedom (Fuller & Geide-Stevenson 379). The belief is that while individuals embrace the freedom of choosing, the economy will run efficiently. Within the United States, strong supporters to Hayeks ideas were a grouping of economists across board.

This formed and unofficial economists group had a general association with elements of free market libertarianism. The terminology refers to economists receiving their considerations as the stock market crashed within 1929. It plunged the globe into turmoil while the competing claims came up on ways of restoring balance to different economies. John Maynard Keynes held that the government has a duty of spend while others are not. On the other hand, Freidrich Hayek considered attempts of intervening both potentially dangerous and pointless.

With the debate, Keynesian economics dominated for a while coinciding with the era of diverse and unprecedented prosperity even though political leaders and conservative economists eventually executed and embraced the contrary vision by Hayek (Fuller & Geide-Stevenson 373). However, Keynes in fact did not oppose Hayeks ideas in "Road to Serfdom". He indirectly helped Hayek develop scripts about. In 1940, when Hayek moved to Cambridge away from the London Blitz, Keynes lived and worked with Keynes until his death.

Ideologically, they were on the same page as the two of them were liberals attached to distastes for various authoritarian regimes like communism and fascism. Keynes agrees with Hayek on fascism as an unhealthy reaction above the communism while most contemporaries across Britain developed the thought. However, other than developing an equally dangerous development for