The importance that the adjustments of the price mechanism free of any external influences has in respect to a prospering economy is highlighted when we investigate the results of the “'natural' movement of prices” is disrupted by monetary policies. These may take the form of either...
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...