I’m sure there are plenty of other differences, but one of the main divergences is the assumption of sticky prices. The entire Keynesian “under-employment” equilibrium rests on wages rates being rigid downward (there is a price floor). If hoarding increases and “aggregate demand” decreases, then for the Austrian all that needs to be done is prices to adjust by falling freely downward (this is oversimplified and excludes changes in the structure of production relating to time preference). Another way of saying this is to let the market correct itself. Keynes, along with Post Keynesians deny that this is the reason for the “underemployment equilibrium” and that there also rests some fundamental market defects. Neo Keynesians, althought getting them to admit this explicitly might be tough, believe that even though prices adjust in the long run, prices are sticky in the short run and this can lead to potential output gaps. Expansionary fiscal/monetary policy is needed to restore aggregate demand.
[quote=“Isaac “Izzy” Marmolejo”]
Keynes’s biographer, Robert Skidelsky, is going to defend Keynes while Jamie Whyte is going to defend Hayek in a debate at the London School of Econ.
would love to see this debate, or hear it.
[/quote]
“Alternatively, the debate will be transmitted on Wednesday 3rd August, 8pm (repeated on Saturday 6th August at 10.15pm) on BBC Radio 4.”
http://www.bbc.co.uk/radio4/ …“Listen” button at top-right for streaming radio. I’m assuming those are London times.
EDIT: corrected location of button
I think the question is “why Schumpeter?”
Maybe it’s just my persona bias / experience. I knew who Schumpeter was before I knew what Austrian economics was, or who Hayek was. In my college econ class he was mentioned as the main opposition. A search on the internet certainly confirms there was a rivalry. I was mostly just pointing out what I see as a general culture shift that has occured within the past 8 years or so. 10 years ago I would have bet a nickle Schumpeter was more popular than Hayek and maybe even would have been contrasted with Keynes more.
It looks like the Hayek team won but, it won’t be televised till the 3rd. of August.
Reminder, the replay of the debate is scheduled to be streamed today at 3pm EST on http://www.bbc.co.uk/radio4/
“Alternatively, the debate will be transmitted on Wednesday 3rd August, 8pm (repeated on Saturday 6th August at 10.15pm) on BBC Radio 4.”
http://www.bbc.co.uk/radio4/ …“Listen” button at top-right for streaming radio. I’m assuming those are London times.
EDIT: corrected location of button
[/quote]
bump
so it is going to be on air in like half an hour, right
yes
Where can I listen to it?
click on listen on the upper right of the page below the search bar
What I found extremely funny is this quote by Skidelsky : “It is what you say in the moment that counts that defines you. And to say ‘Sorry, I didn’t mean that really, I’ve changed my mind,’ is not a very good advertizement for his thinking.”
But I guess Skidelsky forgot that Keynes said that exact same thing when Hayek wrote his critique ("Reflections on the Pure Theory of Money of Mr. J.M.Keynes’‘) on Keynes’ ‘Treatise on Money’
^ you think Skidelsky is saying no one should ever admit to changing their minds?
yes, that is what he is implying there, unless I am somehow comparing apples and oranges here w/ my example… a note though, I am not saying that LS believes this but it is such an absurd criticism to put towards Hayek… quite simply because we all change our minds about something sooner or later…