Hayek and the Trade Cycle

Economics Economics Questions
1

I am considering a purchase, or at least a read, of Hayek`s works on the trade cycle. The three I am interested in are:

  1. The Pure Theory of Capital
  2. Prices and Production
  3. Monetary Theory and The Trade Cycle

Can anyone provide some information on these books? Are they consistent with ABC theory, or do they deviate “too much” from Rothbard, Mises, and Huerta de Soto? I know where I can purchase the first book, but for $60! The other two are more difficult to find.

Any help will be MUCH appreciated!

2

I’ve not read any of them, but from conversations with those who have, I’ve been told the first two are vital reading material for any Austrian with a serious interest in economics. Hayek was at his best on capital.

3

I have read “Monetary Theory and The Trade Cycle.” It (1929) is very much alike Mises (1912) further developing Mises’s idea of the banking sector that contributes to the boom by giving away too much credit for too long. This book emphasizes the monetary aspects of the business cycle.

Prices and production adds the real part of his overinvestment theory to it. I have only read the important chapters. It is probably considered more important as it includes Hayek’s differentiation of the consumer and production goods in the upswing and downswing.

The pure theory of capital is probably the least important of the three and in the tradition of Böhm Bawerk’s capital theory.

4

Thank you for the information. Both of you helped me quite a bit.