It is now time to move from a case where credits are given to producers to where consumers are being given credits. Indeed, the general effects of an increase of money via consumers' credits, which will result in an increased relative demand for consumers' goods compared to producers' ones...
At last we are ready to begin the main problem of this lecture, that is the problem of how a transition to a more capitalistic structure of production, or vice versa, is brought about, and what are the conditions that must be fulfilled for a new equilibrium to be brought about. The first of the two is...
It is now time to add the flow of money into Hayek's theoretical apparatus. While the Hayekian triangle is used to illustrate the movement of goods through the economy's structure of production, it is just as legitimately utilized as a schematic to elucidate the flow of money. When the goods...
Lecture 2: “The Conditions between the Production of Consumers' Goods, and the Production of Producers' Goods” In order to understand how prices influence the amount of goods produced, it is necessary to understand the causes behind variations in industrial output. Economic theory...
Hayek realized that many of the difficulties involved with the first edition of Prices and Production could not be clarified without rewriting the entire book. Indeed, those obstacles were inherent in the mode of expression that he decided to utilize in writing the book. All factors considered, Hayek...
Prices and Production arose, not as a book in and of itself, but out of a series of four lectures that Hayek gave during the 1930-1931 session of the LSE about Hayek’s recent contributions to, in his own words, “theoretical economics”. This provided him a unique, and unprecedented opportunity...