Hayek's Prices and Production and other works.

Economics Economics Questions
1

Has anyone else read this book? I just started the first section on trade cycle theory.

This is a tough read. Is there anywhere someone could point me to help understand what he was trying to say?

  • Cole
2

Yeah, I read it. Are you talking about monetary theory and the trade cycle? The first part of this section deals with static economic theory, that is, economies which are not changing, or not “dynamic.” He tackles the theoretical objections raised against the self-correcting market forces, such as the role of interest rates as the inter-temporal (through time) guider of fops (factors of production) towards warranted economic investments, thus limiting mal-investments and over-investments. In this section he introduces the problem of uncovered credit money, or what Mises called “fiduciary media,” which creates disproportionality by lengthening the capital structure without additional savings.

Keep reading, this book extremely important.

3

Okay. That makes sense.

His use of language makes it a little difficult to understand what he’s trying to say.

4

I’m currently live-blogging Prices, and Production here, though it hasn’t updated in two months, since I’ve just finished my summer job, there should be another surge of activity in the coming weeks.

5

Nice! I’ll have to follow along when I get to this part of the collection.

6

I read this book last winter and it was excellent and I agree with you, a very difficult read. I would sit there and reread certain pages four or five times to understand what Hayek was explaining some times but it was worth it. To understand some of the essays at least in the book I would recommend reading the beginning of America’s Great Depression by Rothbard because he goes over the trade cycle, process of production, and does a bit of refuting Keynes in a very brief amount of time in a very comrepehsnible manner (as always). Another quick read for you to better grasp the concepts in the book would be The Austrian Theory of the Trade Cycle and Other Essays. This should assist you with understanding the book better; hope it helps.

Best regards,

Chris

7

Chris,

I have read The Austrian Theory of the Trade Cycle and Other Essays. I also just finished Human Action. If it weren’t for these reads, and my reading through the home study course, I wouldn’t have understood anything of what Hayek said. The summaries from friendly people like you all help a lot. I really just think it is the heavy language Hayek uses. But I’ll chug along anyhow.

Appreciate the help everyone,

Cole