Keynes v. Hayek
During the time of Great Depression in 1929, the world suffered an enormous economic problem. Along with this historical event, two economists became popular: John Maynard Keynes and Friedrich von Hayek. Both significantly influenced and grabbed the limelight in the field of economics. But the most interesting part here is their ideas are opposite to each other. One of the principal reason of Hayek is in line with how financial crisis takes place. He disapprove of Keyne’s idea that financial crisis is caused by deregulation or little government interference, and free market. As for him, it results from too much regulation. He consider the primary instigators or causes of economic imbalance as excessive interventions in the “natural” market place. His argument is opposite to Keynes’ proposition that government must interfere strategically to economic activities, especially when it is experiencing a downturn. For Keynes, this action o...