Markets and Liberty: From Hayek to Krugman


In the wake of the Great Depression, the economics profession became badly divided when it tried to understand the causes of the worldwide crisis as well as possible solutions to alleviate the economic suffering throughout the world. This debate between F. A. Hayek and John Maynard Keynes continued to rage in the wake of the 2008 financial crisis. In this conference we read and discussed material from that original debate as well as contemporary students of both men who continue to argue about what caused the 2008 recession and what path should have been pursued to recover from it.


Conference Readings

Hayek, Friedrich A. The Collected Works of F. A. Hayek, Volume IX: Contra Keynes and Cambridge: Essays, Correspondence. Edited by Bruce Caldwell. Indianapolis: Liberty Fund, Inc., 2009.

Krugman, Paul. “The Hangover Theory.” Slate (April 1998): 1-4.

Krugman, Paul. “Martin and the Austrians.” The New York Times (July 2010): 1. (accessed ).

Krugman, Paul. “Great Leaps Backward.” The New York Times (January 2011): 1-2. (accessed ).

Krugman, Paul. ¡Acabemos ya con esta crisis! [End This Depression Now!]. Translated by Gonzalo Garcia and Cecilia Belza. Buenos Aires: Editorial Paidos, 2014.

Murphy, Robert. “My reply to Krugman on Austrian Business Cycle Theory.” Mises Daily (January 2011): 1-8. (accessed ).

Stiglitz, Joseph. Freefall: America, Free Markets and the Sinking of the World Economy. New York: W. W. Norton & Company, 2010.

Templeman, Jerry. “Austrian Business Cycle Theory and the Global Financial Crisis: Confessions of the Mainstream Economist.” The Quarterly Journal of Austrian Economics 13, no. 1 (Spring 2010): 3-15.

Wesley, Christopher. “Joseph Stiglitz’s Market Failure Myth.” Mises Daily (January 2012): 1-3. (accessed ).

White, Lawrence, William Lastrapes, and George Selgin. “Has the Fed been a Failure?.” Cato Institute, Washington, DC, 2010. (accessed ) .

Wolf, Martin. “Does Austrian economics understand financial crises better than other schools of thought?” Financial Times (January 2010): 1. (accessed ).