Hayek's Monetary Theory and Policy: A Critical Reconstruction.: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on February 1, 1999. The length of the article is 6386 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Hayek's critique of price-level stabilization was based on the claim that only a constant money stock, (M), or constant volume of nominal spending, (MV), allows intertemporal price equilibrium. The claim is not generally correct. Hayek's case (in principle) for constant MV and his critique of the automatic gold standard for not delivering it are thus uncompelling. The injection effects of his business cycle theory provided an alternative basis for his prescription. In the 1970s Hayek switched to endorsing price-level stabilization. In doing so he was logically compelled to repudiate his business cycle theory.

Citation Details
Title: Hayek's Monetary Theory and Policy: A Critical Reconstruction.
Author: Lawrence H. White
Publication:Journal of Money, Credit & Banking (Refereed)
Date: February 1, 1999
Publisher: Ohio State University Press
Volume: 31 Issue: 1 Page: 109(1)

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