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Hayek?s Monetary Reform Proposals: From Abstract to Concrete

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  • Morris Karp

Abstract

Friedrich Hayek?s views on monetary reform remarkably changed during his lifetime. From an initial stance of defending the gold standard and identifying credit stabilization as the primary goal of monetary policy, Hayek eventually shifted to supporting price stabilization and even proposed ending the central bank?s monopoly on money. This article sheds light on these discrepancies by integrating Hayek?s work as an economist with his research outside the field of pure economics. Hayek?s enquiries concerning monetary influences on real economy, as explored in The Pure Theory of Capital, as well as his development of the category of the abstract in his epistemological research, can help clarifying his transition from credit-stabilization to price-stabilization and his abandonment of a fixed mechanism in favor of a competitive process for the establishment of the optimal currency.

Suggested Citation

  • Morris Karp, 2024. "Hayek?s Monetary Reform Proposals: From Abstract to Concrete," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2024(2), pages 91-117.
    • Handle: RePEc:fan:spespe:v:html10.3280/spe2024-002005
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    References listed on IDEAS

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    1. Luca Fantacci, 2019. "Cryptocurrencies and the Denationalization of Money," International Journal of Political Economy, Taylor & Francis Journals, vol. 48(2), pages 105-126, April.
    2. Martin Komrska & Marek Hudík, 2016. "Hayek’s monetary theory and policy: A note on alleged inconsistency," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 85-92, March.
    3. Antonio Magliulo, 2016. "Hayek and the Great Depression of 1929: Did he really change his mind?," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 23(1), pages 31-58, February.
    4. Martin Komrska & Marek Hudík, 2016. "Hayek’s monetary theory and policy: A note on alleged inconsistency," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 85-92, March.
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    More about this item

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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