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Knowledge Questions: Hayek, Keynes and Beyond


  • William Butos



This paper discusses the “knowledge problem” in terms of both the use and generation of knowledge. This is analyzed in the context of Hayek's failure to respond to the “Keynes Challenge”—the claim that markets fail to produce relevant knowledge—by suggesting that in the aftermath of The General Theory he was not well-positioned to address that problem. Ironically, his post-World War II work in cognitive psychology, The Sensory Order, offers a theory of the generation of knowledge which can provide a useful analogy for understanding the generation of market-level knowledge. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • William Butos, 2003. "Knowledge Questions: Hayek, Keynes and Beyond," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(4), pages 291-307, December.
  • Handle: RePEc:kap:revaec:v:16:y:2003:i:4:p:291-307
    DOI: 10.1023/A:1027344804554

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    References listed on IDEAS

    1. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 51(2), pages 209-223.
    2. Roger Koppl & William Butos, 2001. "Confidence in Keynes and Hayek: Reply to Burczak," Review of Political Economy, Taylor & Francis Journals, vol. 13(1), pages 81-86.
    3. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," Review of Economic Studies, Oxford University Press, vol. 25(2), pages 65-86.
    4. Peter J. Boettke (ed.), 1994. "The Elgar Companion to Austrian Economics," Books, Edward Elgar Publishing, number 53.
    5. Marina Colonna & Harald Hagemann, 1995. "The Economics of F.A. Hayek," Books, Edward Elgar Publishing, volume 0, number 101.
    6. William N. Butos, 1994. "The Hayek-Ketnes macro debate," Chapters,in: The Elgar Companion to Austrian Economics, chapter 68 Edward Elgar Publishing.
    7. William Butos & Roger Koppl, 1993. "Hayekian expectations: Theory and empirical applications," Constitutional Political Economy, Springer, vol. 4(3), pages 303-329, September.
    8. William N. Butos & Roger G. Koppl, 1995. "The Varieties of Subjectivism: Keynes and Hayek on Expectations," Method and Hist of Econ Thought 9505001, EconWPA, revised 17 May 1995.
    9. Runde, Jochen, 1994. "Keynesian Uncertainty and Liquidity Preference," Cambridge Journal of Economics, Oxford University Press, vol. 18(2), pages 129-144, April.
    10. Robert Dimand, 1988. "The Origins of the Keynesian Revolution," Books, Edward Elgar Publishing, number 139.
    11. Hicks, John R, 1969. "Automatists, Hawtreyans, and Keynesians," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(3), pages 307-317, August.
    12. Koppl, Roger & Yeager, Leland B., 1996. "Big Players and Herding in Asset Markets: The Case of the Russian Ruble," Explorations in Economic History, Elsevier, vol. 33(3), pages 367-383, July.
    13. William Butos & Roger Koppl, 2004. "Carabelli & de Vecchi on Keynes and Hayek," Review of Political Economy, Taylor & Francis Journals, vol. 16(2), pages 239-247.
    14. Butos William Ν. & Koppl Roger, 1999. "Hayek And Kirzner At The Keynesian Beauty Contest," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 9(2-3), pages 1-20, June.
    15. Hayek, F. A., 1995. "Contra Keynes and Cambridge," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226320656 edited by Caldwell, Bruce, March.
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    Cited by:

    1. Göcen, Serdar, 2015. "F. A. Hayek'in Bilgisizlik Teorisi Çerçevesinde Piyasa, Denge ve Planlama
      [Market, Equilibrium, and Planning within the Framework of F.A. Hayek's Theory of Ignorance]
      ," MPRA Paper 66811, University Library of Munich, Germany.
    2. Daniel Kuehn, 2011. "A critique of Powell, Woods, and Murphy on the 1920–1921 depression," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(3), pages 273-291, September.
    3. Andrea Migone, 2011. "Embedded markets: A dialogue between F.A. Hayek and Karl Polanyi," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 355-381, December.
    4. Robert Mulligan, 2006. "Accounting for the business cycle: Nominal rigidities, factor heterogeneity, and Austrian capital theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(4), pages 311-336, December.
    5. R. Koppl, 2006. "Austrian economics at the cutting edge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(4), pages 231-241, December.
    6. Schinckus, Christophe, 2009. "Economic uncertainty and econophysics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(20), pages 4415-4423.

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