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Keynes Hayek: The Clash that Defined Modern Economics

2017-10-18 
“I defy anybody―Keynesian, Hayekian, or uncommitted―to read [Wapshott’s] work and not learn somethin
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Keynes Hayek: The Clash that Defined Modern Economics

“I defy anybody―Keynesian, Hayekian, or uncommitted―to read [Wapshott’s] work and not learn something new.”―John Cassidy, The New Yorker

As the stock market crash of 1929 plunged the world into turmoil, two men emerged with competing claims on how to restore balance to economies gone awry. John Maynard Keynes, the mercurial Cambridge economist, believed that government had a duty to spend when others would not. He met his opposite in a little-known Austrian economics professor, Freidrich Hayek, who considered attempts to intervene both pointless and potentially dangerous. The battle lines thus drawn, Keynesian economics would dominate for decades and coincide with an era of unprecedented prosperity, but conservative economists and political leaders would eventually embrace and execute Hayek's contrary vision.

From their first face-to-face encounter to the heated arguments between their ardent disciples, Nicholas Wapshott here unearths the contemporary relevance of Keynes and Hayek, as present-day arguments over the virtues of the free market and government intervention rage with the same ferocity as they did in the 1930s.

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"As we face off against the Great Recession, the only book you need to understand the debate raging in the streets today: economic freedom versus government intervention. An essential primer on the two men who shaped modern finance." "I heartily recommend Nicholas Wapshott's new book, Keynes Hayek: The Clash that Defined Modern Economics... Many books have been written about Keynes, but nobody else has told the story properly of his relationship with Hayek. Nick has filled the gap in splendid fashion, and I defy anybody-Keynesian, Hayekian, or uncommitted-to read his work and not learn something new." -- John Cassidy "Nicholas Wapshott's new book, Keynes Hayek, does an excellent job of setting out the broader history behind this revival of the old debates. Wapshott brings the personalities to life, provides more useful information on the debates than any other source, and miraculously manages to write for both the lay reader and the expert at the same time. Virtually every page is gripping, and yet even the professional economist will glean some insight..." -- Tyler Cowen "Mr. Wapshott has written an important book. It is compelling not only as a history of two distinctive thinkers and their influence, but also as a narrative of political decision-making and its underlying priorities. Underlying Mr. Wapshott's analysis are vital questions for this moment in American history: What kind of society do we want? And what do we owe to our fellow citizens and our collective future?" -- Nancy F. Koehn "Nicholas Wapshott's Keynes Hayek is a smart and absorbing account of one of the most fateful encounters in modern history, remarkably rendered as a taut intellectual drama. Wapshott brilliantly brings to life the human history of ideas that continue to mold our world." -- Sean Wilentz, The Rise of American Democracy "Nicholas Wapshott brings the Keynes-Hayek fight of the twentieth century back to life, making the clash both entertaining and highly relevant for understanding economic crises of the twenty-first century." -- John B. Taylor, Stanford University, Getting Off Track "In the fluency of his writing and his ability to make complex financial questions easily comprehensible, Nicholas Wapshott has done economics itself a great service, by opening the subject up to the general reader, as seen through the prism of one of the most important intellectual gladiatorial contests of modern times." -- Andrew Roberts, The Storm of War: A New History of the Second World War

作者简介

Nicholas Wapshott is the author of Keynes Hayek: The Clash That Defined Modern Economics and Ronald Reagan and Margaret Thatcher: A Political Marriage. A former senior editor at the London Times and the New York Sun, he is now international editor at Newsweek. He lives in New York City.

网友对Keynes Hayek: The Clash that Defined Modern Economics的评论

自由主义与国家干预主义的根源,二人的战争还会继续下去,但更多的还应当交给市场,只有市场才能创造财富!

二十世纪两位大师的思想交锋!英文版值得一读!

This is a very readable book about the conflict and the reasons for it between Keynes and Hayek in their economic theories.

No other economic theory had as much influence on the World in the years 1940 to 1980 as did the Keynesian Theory. For many students who learned Economics in college, including myself, they only learned Keynesian Economics. Most us never heard of Hayek!

But Keynesian theories failed in the 1970's: actually it was only then that we learned of the flaws in Keynesian economics, that is "stagflation." It was then that we learned of the free market theories of Hayek and Friedman (who wasn't initially influenced by Hayek.) The application of free market theories in the 1980's by Britain's Margaret Thatcher and US's Ronald Reagan stopped the runaway inflation of the 1970's as the bills accrued in the Keynes's years came due.

There are many lessons to be learned in this book about economic policy. Both Keynes and Hayek had valid points in their theories. Keynes, the more successful of the two, approached economics (Macroeconomics) from a top down, full employment approach. Hayek on the other hand approached economics from a bottoms up (Microeconomics) based on minimizing inflation and free markets. Ultimately, one would expect the theories to converge; so there is still work to do.

What one learns in this book is that politicians, who establish short term economic policy, will do anything to further their reelection, even though the economic theory projects future problems! That is really the sad overall lesson from this book. Rarely are these the best long term solution!

Prof. Wapshott does a great job of not getting too technical in this history of the two prominent types of economics. The Classical school versus the Keynsian models. I think he is fair in his handling the fact that the vast majority of the economist in the world follow the Keynes model and how this was an easy to win political battle, when one model says let them go bust and the boat will right itself and the other says, throw them money and work until the boat rights itself. Our current heads of the Fed etc are using the idea with QE policies that borrow and spend money with the intent of saving the debt burdened system with more debt.

He makes a pretty good argument that these two systems have to be held in tension and not followed blindly, a'la the 1970-80's with stagflation. Cured by the Classic school, you have to take the pain to gain.

Short answer is he does not waste all of your energy on mathematical models and charts.

How can we approach economic questions, thus politics, daily life, social questions, without a better understanding of these giants of the professional calling? Both are abused by unthinking devotees, fanatics who attribute mystical excellences upon them as they seek to project views and perspectives. A decent selection of economic principles espoused by both men is essential to synthesize a newer, fresher approach to solving severe economic problems as they arise. Everything seems to split into left/right, black/white camps, plaguing the human condition. Seeking economic wisdom does not require more fantasy or fanaticism by followers. This book does enlighten. Keynes invested wisely and amassed adequately. Hayek never worked in private business, nor invested in markets. Keynes presided over international gatherings and great insurance groups. Hayek had to bludge for a pension paying job to support retirement and two family's needs. Keynes appeals to adventurous groupthinkers, while Hayek ignites greed, hording and cornering instincts. Both had suffered agonies in war association, without fully understanding the inner mysteries of persanal adjustment. We need some of the things they explained, not as prescriptions, dogma, quotes, but as components of a new and necessary wisdom, if we are to face a crushing, intimidating future olf financial blizzardry.

As with most political topics, most people with enough interest to write a book probably have a definite position. Is is to the authors credit that the reader cannot discern that position. He is able to be enthusiastic in his description of the presumed merits of each of the positions of these 2 pivotal characters. This is achieved partly by the back and forth historical approach of the book and the use of well balanced adjectives. Since readers of this book will also, no doubt, have definite political positions around this very topical issue, the reader should be forewarned that there will be whole chapters that may be difficult to get through, regardless of their position. This is a win for the book and its author! This is not the false balance seen in the current media, where every report a misdeed of one political party must be immediately countered with some example of a misdeed of the other political party, relevant or not, so they can avoid the criticism of bias.

I felt I learned much from the book! Not only the difference between Hayek and Keynes, but also the difference between Hayek and Milton Friedman. Well Done.

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