Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with

Gunnar Myrdal Karl Gunnar Myrdal ( ; ; 6 December 1898 – 17 May 1987) was a Swedish economist and sociologist. In 1974, he received the Nobel Memorial Prize in Economic Sciences along with Friedrich Hayek for "their pioneering work in the theory of money a ...

for their work on money and economic fluctuations, and the interdependence of economic, social and institutional phenomena. His account of how changing prices communicate information that helps individuals coordinate their plans is widely regarded as an important achievement in economics, leading to his prize. Hayek served in World War I during his teenage years and said that this experience in the war and his desire to help avoid the mistakes that had led to the war drew him into economics. At the University of Vienna, he studied economics, eventually receiving his doctoral degrees in law in 1921 and in political science in 1923. He subsequently lived and worked in Austria, Great Britain, the United States, and Germany; he became a British subject in 1938. Hayek's academic life was mostly spent at the London School of Economics, and later at the University of Chicago, and the University of Freiburg. He is widely considered a leader of the

Austrian School of Economics The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school ...

, although he also had close connections with the

Chicago School of Economics The Chicago school of economics is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, some of whom have constructed and popularized its principles. Milton Friedman and George Stigl ...

. Hayek was also a major social theorist and political philosopher of the 20th century and as the co-founder of Mont Pelerin Society he contributed to the revival of classical liberalism in the post-war era. His most popular work, ''

The Road to Serfdom ''The Road to Serfdom'' ( German: ''Der Weg zur Knechtschaft'') is a book written between 1940 and 1943 by Austrian-British economist and philosopher Friedrich Hayek. Since its publication in 1944, ''The Road to Serfdom'' has been popular among l ...

'', has sold over 2.25 million copies (as of 2020). Hayek was appointed a

Companion of Honour The Order of the Companions of Honour is an order of the Commonwealth realms. It was founded on 4 June 1917 by King George V as a reward for outstanding achievements. Founded on the same date as the Order of the British Empire, it is sometime ...

in 1984 for his academic contributions to economics. He was the first recipient of the Hanns Martin Schleyer Prize in 1984. He also received the Presidential Medal of Freedom in 1991 from President George H. W. Bush. In 2011, his article "

The Use of Knowledge in Society "The Use of Knowledge in Society" is a scholarly article written by economist Friedrich Hayek, first published in the September 1945 issue of '' The American Economic Review''. Written (along with ''The Meaning of Competition'') as a rebuttal to ...

" was selected as one of the top 20 articles published in the ''

American Economic Review The ''American Economic Review'' is a monthly peer-reviewed academic journal published by the American Economic Association. First published in 1911, it is considered one of the most prestigious and highly distinguished journals in the field of eco ...

'' during its first 100 years.

Life

Early life

Friedrich August von Hayek was born in Vienna to August von Hayek and Felicitas Hayek (''née'' von Juraschek). His father, born in 1871 also in Vienna, was a medical doctor employed by the municipal ministry of health. August was a part-time botany lecturer at the University of Vienna. Friedrich was the oldest of three brothers, Heinrich (1900–1969) and Erich (1904–1986), who were one-and-a-half and five years younger than he was. His father's career as a university professor influenced Hayek's goals later in life. Both of his grandfathers, who lived long enough for Hayek to know them, were scholars. Franz von Juraschek was a leading economist in

Austria-Hungary Austria-Hungary, often referred to as the Austro-Hungarian Empire,, the Dual Monarchy, or Austria, was a constitutional monarchy and great power in Central Europe between 1867 and 1918. It was formed with the Austro-Hungarian Compromise of 1 ...

and a close friend of

Eugen von Böhm-Bawerk Eugen Ritter von Böhm-Bawerk (; born Eugen Böhm, 12 February 185127 August 1914) was an Austrian economist who made important contributions to the development of the Austrian School of Economics and neoclassical economics. He served intermitten ...

, one of the founders of the

Austrian School The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school ...

of Economics. Hayek's paternal grandfather, Gustav Edler von Hayek, taught natural sciences at the Imperial ''Realobergymnasium'' (secondary school) in Vienna. He wrote works in the field of biological systematics, some of which are relatively well known. On his mother's side, Hayek was second cousin to the philosopher Ludwig Wittgenstein. His mother often played with Wittgenstein's sisters and had known him well. As a result of their family relationship, Hayek became one of the first to read Wittgenstein's '' Tractatus Logico-Philosophicus'' when the book was published in its original German edition in 1921. Although he met Wittgenstein on only a few occasions, Hayek said that Wittgenstein's philosophy and methods of analysis had a profound influence on his own life and thought. In his later years, Hayek recalled a discussion of philosophy with Wittgenstein when both were officers during World War I. After Wittgenstein's death, Hayek had intended to write a biography of Wittgenstein and worked on collecting family materials and later assisted biographers of Wittgenstein. He was related to Wittgenstein on the non-Jewish side of the Wittgenstein family. Since his youth, Hayek frequently socialized with Jewish intellectuals and he mentions that people often speculated whether he was also of Jewish ancestry. That made him curious, so he spent some time researching his ancestors and found out that he has no Jewish ancestors within five generations. The surname

Hayek Hayek, Hayki or AlHayki is a surname: * As a variant spelling of the Czech name Hájek, which originally meant "a grove", it commonly occurs in Czech place names. It occurs among Polish Jews in a Polish language spelling as ''Chajek''. * The fa ...

uses the German spelling of the Czech surname Hájek. Hayek traced his ancestry to an ancestor with the surname "Hagek" who came from Prague. Hayek displayed an intellectual and academic bent from a very young age and read fluently and frequently before going to school. However, he did quite poorly at school, due to lack of interest and problems with teachers. He was at the bottom of his class in most subjects, and once received three failing grades, in Latin, Greek and mathematics. He was very interested in theater, even attempting to write some tragedies, and

biology Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary ...

, regularly helping his father with his botanical work. At his father's suggestion, as a teenager he read the genetic and evolutionary works of Hugo de Vries and

August Weismann August Friedrich Leopold Weismann FRS (For), HonFRSE, LLD (17 January 18345 November 1914) was a German evolutionary biologist. Fellow German Ernst Mayr ranked him as the second most notable evolutionary theorist of the 19th century, after Cha ...

and the philosophical works of Ludwig Feuerbach. He noted

Goethe Johann Wolfgang von Goethe (28 August 1749 – 22 March 1832) was a German poet, playwright, novelist, scientist, statesman, theatre director, and critic. His works include plays, poetry, literature, and aesthetic criticism, as well as tre ...

as the greatest early intellectual influence. In school, Hayek was much taken by one instructor's lectures on

Aristotle's ethics Aristotle first used the term ''ethics'' to name a field of study developed by his predecessors Socrates and Plato. In philosophy, ethics is the attempt to offer a rational response to the question of how humans should best live. Aristotle regarde ...

. In his unpublished autobiographical notes, Hayek recalled a division between him and his younger brothers who were only a few years younger than him, but he believed that they were somehow of a different generation. He preferred to associate with adults. The

In 1917, Hayek joined an artillery regiment in the

Austro-Hungarian Army The Austro-Hungarian Army (, literally "Ground Forces of the Austro-Hungarians"; , literally "Imperial and Royal Army") was the ground force of the Austro-Hungarian Dual Monarchy from 1867 to 1918. It was composed of three parts: the joint arm ...

and fought on the Italian front. Hayek suffered damage to his hearing in his left ear during the war and was decorated for bravery. He also survived the

1918 flu pandemic The 1918–1920 influenza pandemic, commonly known by the misnomer Spanish flu or as the Great Influenza epidemic, was an exceptionally deadly global influenza pandemic caused by the H1N1 influenza A virus. The earliest documented case was ...

. Hayek then decided to pursue an academic career, determined to help avoid the mistakes that had led to the war. Hayek said of his experience: "The decisive influence was really World War I. It's bound to draw your attention to the problems of political organization". He vowed to work for a better world.

Education

At the University of Vienna, Hayek initially studied mostly philosophy, psychology and economics. The university allowed students to choose their subjects freely and there wasn't much obligatory written work, or tests except main exams at the end of the study. By the end of his studies Hayek became more interested in economics, mostly for financial and career reasons; he planned to combine law and economics to start a career in diplomatic service. He earned doctorates in law and political science in 1921 and 1923 respectively. For a short time, when the University of Vienna closed he studied in

Constantin von Monakow Constantin von Monakow (4 November 1853 – 19 October 1930) was a Russian-Swiss neuropathologist who was a native of Bobretsovo in the Vologda Governorate. He studied at the University of Zurich while working as an assistant at the Burghölzli In ...

's Institute of Brain Anatomy, where Hayek spent much of his time

staining Staining is a technique used to enhance contrast in samples, generally at the microscopic level. Stains and dyes are frequently used in histology (microscopic study of biological tissues), in cytology (microscopic study of cells), and in the ...

brain cells.''Some Reflection on Hayek's The Sensory Order'', Caldwell, 2004 Hayek's time in Monakow's lab and his deep interest in the work of Ernst Mach inspired his first intellectual project, eventually published as ''The Sensory Order'' (1952). It located connective learning at the physical and neurological levels, rejecting the "sense data" associationism of the

empiricists In philosophy, empiricism is an epistemological theory that holds that knowledge or justification comes only or primarily from sensory experience. It is one of several views within epistemology, along with rationalism and skepticism. Empir ...

and

logical positivists Logical positivism, later called logical empiricism, and both of which together are also known as neopositivism, is a movement in Western philosophy whose central thesis was the verification principle (also known as the verifiability criterion o ...

. The Sensory Order (1952) on learning * * Hayek presented his work to the private seminar he had created with

Herbert Furth Josef Herbert Furth (J. Herbert Furth, October 12, 1899, Vienna, Austria – March 6, 1995, Chevy Chase, Maryland, United States) was Austrian and American jurist and economist.the Geistkreis. During Hayek's years at the University of Vienna,

Carl Menger Carl Menger von Wolfensgrün (; ; 28 February 1840 – 26 February 1921) was an Austrian economist and the founder of the Austrian School of economics. Menger contributed to the development of the theories of marginalism and marginal utility, ...

's work on the explanatory strategy of social science and Friedrich von Wieser's commanding presence in the classroom left a lasting influence on him. Upon the completion of his examinations, Hayek was hired by Ludwig von Mises on the recommendation of Wieser as a specialist for the Austrian government working on the legal and economic details of the Treaty of Saint-Germain-en-Laye. Between 1923 and 1924, Hayek worked as a research assistant to Professor

Jeremiah Jenks Jeremiah Whipple Jenks (1856–1929) was an American economist, educator, and Professor at Cornell University, who held various posts in the US government throughout his career. He served as a member of the Dillingham Immigration Commission from 1 ...

of New York University, compiling macroeconomic data on the American economy and the operations of the

Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after ...

. He was influenced by

Wesley Clair Mitchell Wesley Clair Mitchell (August 5, 1874 – October 29, 1948) was an American economist known for his empirical work on business cycles and for guiding the National Bureau of Economic Research in its first decades. Mitchell was referred to as Thor ...

and started a doctoral program on problems of monetary stabilization but didn't finish it. His time in America wasn't especially happy. He had very limited social contacts, missed the cultural life of Vienna, and was troubled by his poverty. His family's financial situation deteriorated significantly after the War. Initially sympathetic to Wieser's democratic socialism he found Marxism rigid and unattractive, and his mild socialist phase lasted until he was about 23. Hayek's economic thinking shifted away from socialism and toward the classical liberalism of Carl Menger after reading von Mises' book '' Socialism''. It was sometime after reading ''Socialism'' that Hayek began attending von Mises' private seminars, joining several of his university friends, including

Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austrian- American economist who was president of the International Economic Association from 1971–1974. He was one of the first economists to examine knowledge as an economic re ...

Alfred Schutz Alfred may refer to: Arts and entertainment *'' Alfred J. Kwak'', Dutch-German-Japanese anime television series * ''Alfred'' (Arne opera), a 1740 masque by Thomas Arne * ''Alfred'' (Dvořák), an 1870 opera by Antonín Dvořák *"Alfred (Interl ...

Felix Kaufmann Felix Kaufmann (4 July 1895, Vienna – 23 December 1949, New York) was an Austrian-American philosopher of law. Biography Kaufmann studied jurisprudence and philosophy in Vienna. He became part of the legal-philosophical school of Hans Kelsen. ...

and

Gottfried Haberler Gottfried von Haberler (; July 20, 1900 – May 6, 1995) was an Austrian-American economist. He worked in particular on international trade. One of his major contributions was reformulating the Ricardian idea of comparative advantage in a neoc ...

, who were also participating in Hayek's own more general and private seminar. It was during this time that he also encountered and befriended noted political philosopher

Eric Voegelin Eric Voegelin (born Erich Hermann Wilhelm Vögelin, ; 1901–1985) was a German-American political philosopher. He was born in Cologne, and educated in political science at the University of Vienna, where he became an associate professor of poli ...

, with whom he retained a long-standing relationship.

London School of Economics

With the help of Mises, in the late 1920s he founded and served as director of the Austrian Institute for Business Cycle Research before joining the faculty of the London School of Economics (LSE) in 1931 at the behest of

Lionel Robbins Lionel Charles Robbins, Baron Robbins, (22 November 1898 – 15 May 1984) was a British economist, and prominent member of the economics department at the London School of Economics (LSE). He is known for his leadership at LSE, his proposed de ...

. Upon his arrival in London, Hayek was quickly recognised as one of the leading economic theorists in the world and his development of the economics of processes in time and the co-ordination function of prices inspired the ground-breaking work of

John Hicks Sir John Richards Hicks (8 April 1904 – 20 May 1989) was a British economist. He is considered one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economic ...

Abba P. Lerner Abraham "Abba" Ptachya Lerner (also Abba Psachia Lerner; 28 October 1903 – 27 October 1982) was a Russian-born American-British economist. Biography Born in Novoselytsia, Bessarabia, Russian Empire, Lerner grew up in a Jewish family, which ...

and many others in the development of modern microeconomics. In 1932, Hayek suggested that private investment in the public markets was a better road to wealth and economic co-ordination in Britain than government spending programs as argued in an exchange of letters with

John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...

, co-signed with Lionel Robbins and others in '' The Times''. The nearly decade long deflationary depression in Britain dating from Winston Churchill's decision in 1925 to return Britain to the gold standard at the old pre-war and pre-inflationary par was the public policy backdrop for Hayek's dissenting engagement with Keynes over British monetary and fiscal policy. Keynes called Hayek's book ''Prices and Production'' "one of the most frightful muddles I have ever read", famously adding: "It is an extraordinary example of how, starting with a mistake, a remorseless logician can end in Bedlam". Notable economists who studied with Hayek at the LSE in the 1930s and 1940s include Arthur Lewis, Ronald Coase, William Baumol,

CH Douglas Major Clifford Hugh "C. H." Douglas, MIMechE, MIEE (20 January 1879 – 29 September 1952), was a British engineer and pioneer of the social credit economic reform movement. Education and engineering career C.H. Douglas was born in either Edg ...

, John Kenneth Galbraith, Leonid Hurwicz,

Abba Lerner Abraham "Abba" Ptachya Lerner (also Abba Psachia Lerner; 28 October 1903 – 27 October 1982) was a Russian-born American-British economist. Biography Born in Novoselytsia, Bessarabia, Russian Empire, Lerner grew up in a Jewish family, which ...

, Nicholas Kaldor,

George Shackle George Lennox Sharman Shackle (14 July 1903 – 3 March 1992) was an English economist. He made a practical attempt to challenge classical rational choice theory and has been characterised as a "post-Keynesian", though he is influenced as well by ...

Thomas Balogh Thomas Balogh, Baron Balogh (2 November 190520 January 1985), born Balog Tamás, was a British economist and member of the House of Lords. The elder son of a wealthy Budapest Jewish family (his father was head of public transport, his mother ...

L. K. Jha Lakshmi Kant Jha, MBE (22 November 1913 – 16 January 1988), born in Darbhanga district, Bihar was the eighth Governor of the Reserve Bank of India from 1 July 1967 to 3 May 1970. Education and career Lakshmi Kant Jha was born into a Maithi ...

Arthur Seldon Arthur Seldon, (29 May 1916 – 11 October 2005) was joint founder president, with Ralph Harris, of the Institute of Economic Affairs, where he directed editorial affairs and publishing for more than thirty years. He is the father of po ...

, Paul Rosenstein-Rodan and Oskar Lange. Some were supportive and some were critical of his ideas. Hayek also taught or tutored many other LSE students, including David Rockefeller. Unwilling to return to Austria after the ''

Anschluss The (, or , ), also known as the (, en, Annexation of Austria), was the annexation of the Federal State of Austria into the Nazi Germany, German Reich on 13 March 1938. The idea of an (a united Austria and Germany that would form a "Ger ...

'' brought it under the control of Nazi Germany in 1938, Hayek remained in Britain. Hayek and his children became

British subject The term "British subject" has several different meanings depending on the time period. Before 1949, it referred to almost all subjects of the British Empire (including the United Kingdom, Dominions, and colonies, but excluding protectorates ...

s in 1938. He held this status for the remainder of his life, but he did not live in Great Britain after 1950. He lived in the United States from 1950 to 1962 and then mostly in Germany, but also briefly in Austria. In 1947, Hayek was elected a

Fellow of the Econometric Society In the scientific discipline of economics, the Econometric Society is a learned society devoted to the advancement of economics by using mathematical and statistical methods. This article is a list of its (current and in memory) fellows. Fellows ...

''The Road to Serfdom''

Hayek was concerned about the general view in Britain's academia that fascism was a capitalist reaction to socialism and ''The Road to Serfdom'' arose from those concerns. The title was inspired by the French classical liberal thinker

Alexis de Tocqueville Alexis Charles Henri Clérel, comte de Tocqueville (; 29 July 180516 April 1859), colloquially known as Tocqueville (), was a French aristocrat, diplomat, political scientist, political philosopher and historian. He is best known for his works ...

's writings on the "road to servitude". It was first published in Britain by Routledge in March 1944 and was quite popular, leading Hayek to call it "that unobtainable book" also due in part to wartime paper rationing. When it was published in the United States by the University of Chicago in September of that year, it achieved greater popularity than in Britain. At the instigation of editor Max Eastman, the American magazine '' Reader's Digest'' also published an abridged version in April 1945, enabling ''The Road to Serfdom'' to reach a far wider audience than academics. The book is widely popular among those advocating individualism and classical liberalism.

Chicago

In 1950, Hayek left the London School of Economics. After spending the 1949–1950 academic year as a visiting professor at the

University of Arkansas The University of Arkansas (U of A, UArk, or UA) is a public land-grant research university in Fayetteville, Arkansas. It is the flagship campus of the University of Arkansas System and the largest university in the state. Founded as Arkansas In ...

, Hayek was conferred professorship by the University of Chicago, where he became a professor in the

Committee on Social Thought The John U. Nef Committee on Social Thought is one of several PhD-granting committees at the University of Chicago. It was started in 1941 by historian John Ulric Nef along with economist Frank Knight, anthropologist Robert Redfield, and Unive ...

. Hayek's salary was funded not by the university, but by an outside foundation, the

William Volker Fund The William Volker Fund was a charitable foundation established in 1932 by Kansas City, Missouri, businessman and home-furnishings mogul William Volker. Volker founded the fund with the purposes of aiding the needy, reforming Kansas City's health ...

. Hayek had made contact with many at the University of Chicago in the 1940s, with Hayek's ''The Road to Serfdom'' playing a seminal role in transforming how Milton Friedman and others understood how society works. Hayek conducted a number of influential faculty seminars while at the University of Chicago and a number of academics worked on research projects sympathetic to some of Hayek's own, such as

Aaron Director Aaron Director (; September 21, 1901 – September 11, 2004) was a Russian-born American economist and academic who played a central role in the development of the field Law and Economics and the Chicago school of economics. Director was a profe ...

, who was active in the Chicago School in helping to fund and establish what became the "Law and Society" program in the University of Chicago Law School. Hayek,

Frank Knight Frank Hyneman Knight (November 7, 1885 – April 15, 1972) was an American economist who spent most of his career at the University of Chicago, where he became one of the founders of the Chicago School. Nobel laureates Milton Friedman, George ...

, Friedman and

George Stigler George Joseph Stigler (; January 17, 1911 – December 1, 1991) was an American economist. He was the 1982 laureate in Nobel Memorial Prize in Economic Sciences and is considered a key leader of the Chicago school of economics. Early life and e ...

worked together in forming the Mont Pèlerin Society, an international forum for neoliberals. Hayek and Friedman cooperated in support of the Intercollegiate Society of Individualists, later renamed the

Intercollegiate Studies Institute The Intercollegiate Studies Institute (ISI) is a nonprofit educational organization that promotes conservative thought on college campuses. It was founded in 1953 by Frank Chodorov with William F. Buckley Jr. as its first president. It sponsors ...

, an American student organisation devoted to libertarian ideas. Although they shared most political beliefs, disagreeing primarily on question of monetary policy, Hayek and Friedman worked in separate university departments with different research interests and never developed a close working relationship. According to Alan O. Ebenstein, who wrote biographies of both of them, Hayek probably had a closer friendship with Keynes than with Friedman. Hayek received a Guggenheim Fellowship in 1954. Another influential political philosopher and German-speaking exile at the University of Chicago at the time was

Leo Strauss Leo Strauss (, ; September 20, 1899 – October 18, 1973) was a German-American political philosopher who specialized in classical political philosophy. Born in Germany to Jewish parents, Strauss later emigrated from Germany to the United States. ...

, but according to his student

Joseph Cropsey Joseph Cropsey (New York, August 27, 1919 – Washington, D.C., July 1, 2012) was an American political philosopher and professor emeritus of political science at the University of Chicago, where he was also associate director of the John M. Oli ...

who also knew Hayek, there was no contact between the two of them. After editing a book on John Stuart Mill's letters he planned to publish two books on the liberal order, ''

The Constitution of Liberty ''The Constitution of Liberty'' is the magnum opus of Austrian economist and 1974 Nobel Memorial Prize in Economic Sciences recipient Friedrich A. Hayek. First published in 1960 by the University of Chicago Press, the book is considered Hayek’s c ...

'' and "The Creative Powers of a Free Civilization" (eventually the title for the second chapter of ''The Constitution of Liberty''). He completed ''The Constitution of Liberty'' in May 1959, with publication in February 1960. Hayek was concerned that "with that condition of men in which coercion of some by others is reduced as much as is possible in society".F.A. Hayek, ''The Constitution of Liberty'' (London: Routledge & Kegan Paul, 1960) Hayek was disappointed that the book did not receive the same enthusiastic general reception as ''The Road to Serfdom'' had sixteen years before. He left Chicago mostly because of financial reasons, being concerned about his pension provisions. His primary source of income was his salary and he received some additional money from book royalties, but avoided other lucrative sources of income for academics such as writing textbooks. He spent a lot on his frequent travels. He regularly spent summers in

Austrian Alps The Central Eastern Alps (german: Zentralalpen or Zentrale Ostalpen), also referred to as Austrian Central Alps (german: Österreichische Zentralalpen) or just Central Alps, comprise the main chain of the Eastern Alps in Austria and the adjacent ...

, usually in the Tyrolean village

Obergurgl Obergurgl is a village in the Ötztal Alps in Tyrol, Austria. Located in the municipality of Sölden, the village has approximately 400 year-round inhabitants, and is mainly a tourist resort. At an elevation of , Obergurgl is the highest parish ...

where he enjoyed mountain climbing, and also visited Japan four times with additional trips to Tahiti, Fiji, Indonesia, Australia, New Caledonia and

Ceylon Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...

. After his divorce, his financial situation worsened.

Freiburg and Salzburg

From 1962 until his retirement in 1968, he was a professor at the University of Freiburg, West Germany, where he began work on his next book, '' Law, Legislation and Liberty''. Hayek regarded his years at Freiburg as "very fruitful". Following his retirement, Hayek spent a year as a visiting professor of philosophy at the University of California, Los Angeles, where he continued work on ''Law, Legislation and Liberty'', teaching a graduate seminar by the same name and another on the philosophy of social science. Preliminary drafts of the book were completed by 1970, but Hayek chose to rework his drafts and finally brought the book to publication in three volumes in 1973, 1976 and 1979. BuildingUniversitySalzburg1

Hayek became a professor at the University of Salzburg from 1969 to 1977 and then returned to Freiburg. When Hayek left Salzburg in 1977, he wrote: "I made a mistake in moving to Salzburg". The economics department was small and the library facilities were inadequate. Although Hayek's health suffered, and he fell into a depressionary bout, he continued to work on his magnum opus, ''Law, Legislation and Liberty'' in periods when he was feeling better.

Nobel Memorial Prize

On 9 October 1974, it was announced that Hayek would be awarded the

Nobel Memorial Prize in Economics The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...

with Swedish economist

, with the reasons for selection being listed in a press release. He was surprised at being given the award and believed that he was given it with Myrdal to balance the award with someone from the opposite side of the political spectrum.Ebenstein, p. 263. The Sveriges-Riksbank Nobel Prize in Economics was established in 1968, and Hayek was the first non-Keynesian economist to win it. Among the reasons given, the committee stated, Hayek "was one of the few economists who gave warning of the possibility of a major economic crisis before the great crash came in the autumn of 1929." The following year, Hayek further confirmed his original prediction. An interviewer asked, "We understand that you were one of the only economists to forecast that America was headed for a depression, is that true?" Hayek responded, "Yes." However, no textual evidence has emerged of "a prediction". Indeed, Hayek wrote on 26 October 1929, three days before the crash, "at present there is no reason to expect a sudden crash of the New York stock exchange. ... The credit possibilities/conditions are, at any rate, currently very great, and therefore it appears assured that an outright crisis-like destruction of the present high ricelevel should not be feared." During the Nobel ceremony in December 1974, Hayek met the Russian dissident

Aleksandr Solzhenitsyn Aleksandr Isayevich Solzhenitsyn. (11 December 1918 – 3 August 2008) was a Russian novelist. One of the most famous Soviet dissidents, Solzhenitsyn was an outspoken critic of communism and helped to raise global awareness of political repres ...

. Hayek later sent him a Russian translation of ''The Road to Serfdom''. He spoke with apprehension at his award speech about the danger the authority of the prize would lend to an economist, but the prize brought much greater public awareness to the then controversial ideas of Hayek and was described by his biographer as "the great rejuvenating event in his life".

British politics

In February 1975, Margaret Thatcher was elected leader of the

British Conservative Party The Conservative Party, officially the Conservative and Unionist Party and also known colloquially as the Tories, is one of the two main political parties in the United Kingdom, along with the Labour Party. It is the current governing party, ...

. The Institute of Economic Affairs arranged a meeting between Hayek and Thatcher in London soon after. During Thatcher's only visit to the

Conservative Research Department The Conservative Research Department (CRD) is part of the central organisation of the Conservative Party in the United Kingdom. It operates alongside other departments of Conservative Campaign Headquarters in Westminster. The CRD has been desc ...

in the summer of 1975, a speaker had prepared a paper on why the "middle way" was the pragmatic path the Conservative Party should take, avoiding the extremes of left and right. Before he had finished, Thatcher "reached into her briefcase and took out a book. It was Hayek's ''The Constitution of Liberty''. Interrupting our pragmatist, she held the book up for all of us to see. 'This', she said sternly, 'is what we believe', and banged Hayek down on the table". Despite the media depictions of him as Thatcher's guru and power behind the throne, the communication between him and the Prime Minister was not very regular, they were in contact only once or twice a year. Besides Thatcher, Hayek also made a significant influence on Enoch Powell, Keith Joseph,

Nigel Lawson Nigel Lawson, Baron Lawson of Blaby, (born 11 March 1932) is a British Conservative Party politician and journalist. He was a Member of Parliament representing the constituency of Blaby from 1974 to 1992, and served in the cabinet of Margar ...

, Geoffrey Howe and

John Biffen William John Biffen, Baron Biffen, (3 November 1930 – 14 August 2007), was a British Conservative Party politician. A member of the House of Lords, he was previously a Member of Parliament for over 35 years, and served in Margaret Thatcher ...

. Hayek gained some controversy in 1978 by praising Thatcher's

anti-immigration Opposition to immigration, also known as anti-immigration, has become a significant political ideology in many countries. In the modern sense, immigration refers to the entry of people from one state or territory into another state or territory ...

policy proposal in an article which ignited numerous accusations of

anti-Semitism Antisemitism (also spelled anti-semitism or anti-Semitism) is hostility to, prejudice towards, or discrimination against Jews. A person who holds such positions is called an antisemite. Antisemitism is considered to be a form of racism. Antis ...

and racism because of his reflections on the inability of assimilation of Eastern European Jews in the Vienna of his youth. He defended himself by explaining that he made no racial judgements, only highlighted the problems of acculturation. In 1977, Hayek was critical of the

Lib–Lab pact In British politics, a Lib–Lab pact is a working arrangement between the Liberal Democrats (in previous times, the Liberal Party) and the Labour Party. There have been four such arrangements, and one alleged proposal, at the national level. In ...

in which the

British Liberal Party The Liberal Party was one of the two Major party, major List of political parties in the United Kingdom, political parties in the United Kingdom, along with the Conservative Party (UK), Conservative Party, in the 19th and early 20th centuries. ...

agreed to keep the British Labour government in office. Writing to ''The Times'', Hayek said: "May one who has devoted a large part of his life to the study of the history and the principles of liberalism point out that a party that keeps a socialist government in power has lost all title to the name 'Liberal'. Certainly no liberal can in future vote 'Liberal'". Hayek was criticised by Liberal politicians Gladwyn Jebb and Andrew Phillips, who both claimed that the purpose of the pact was to discourage socialist legislation. Lord Gladwyn pointed out that the German Free Democrats were in coalition with the

German Social Democrats German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ge ...

. Hayek was defended by Professor

Antony Flew Antony Garrard Newton Flew (; 11 February 1923 – 8 April 2010) was a British philosopher. Belonging to the analytic and evidentialist schools of thought, Flew worked on the philosophy of religion. During the course of his career he taught at ...

, who stated that—unlike the British Labour Party—the German Social Democrats had since the late 1950s abandoned public ownership of the means of production, distribution and exchange and had instead embraced the social market economy. In 1978, Hayek came into conflict with Liberal Party leader David Steel, who claimed that liberty was possible only with "social justice and an equitable distribution of wealth and power, which in turn require a degree of active government intervention" and that the Conservative Party were more concerned with the connection between liberty and private enterprise than between liberty and democracy. Hayek claimed that a limited democracy might be better than other forms of limited government at protecting liberty, but that an unlimited democracy was worse than other forms of unlimited government because "its government loses the power even to do what it thinks right if any group on which its majority depends thinks otherwise". Hayek stated that if the Conservative leader had said "that free choice is to be exercised more in the market place than in the ballot box, she has merely uttered the truism that the first is indispensable for individual freedom while the second is not: free choice can at least exist under a dictatorship that can limit itself but not under the government of an unlimited democracy which cannot". Hayek supported Britain in the Falklands War, writing that it would be justified to attack Argentinian territory instead of just defending the islands, which earned him a lot of criticism in Argentina, a country which he also visited several times. He was also displeased by the weak response of the United States to the Iran hostage crisis, claiming that an ultimatum should be issued and Iran bombed if they do not comply. He supported Ronald Reagan's decision to keep high defence spending, believing that a strong US military is a guarantee of world peace and necessary to keep the Soviet Union under control. President

Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...

listed Hayek as among the two or three people who most influenced his philosophy and welcomed him to the White House as a special guest. Senator

Barry Goldwater Barry Morris Goldwater (January 2, 1909 – May 29, 1998) was an American politician and United States Air Force officer who was a five-term U.S. Senator from Arizona (1953–1965, 1969–1987) and the Republican Party nominee for presid ...

listed Hayek as his favourite political philosopher and congressman Jack Kemp named him an inspiration for his political career.

Recognition

Friedrich August von Hayek, 27th January 1981, the 50th Anniversary of his first lecture at LSE, 1981 (4303825588)

In 1980, Hayek was one of twelve Nobel laureates to meet with

Pope John Paul II Pope John Paul II ( la, Ioannes Paulus II; it, Giovanni Paolo II; pl, Jan Paweł II; born Karol Józef Wojtyła ; 18 May 19202 April 2005) was the head of the Catholic Church and sovereign of the Vatican City State from 1978 until his ...

"to dialogue, discuss views in their fields, communicate regarding the relationship between Catholicism and science, and 'bring to the Pontiff's attention the problems which the Nobel Prize Winners, in their respective fields of study, consider to be the most urgent for contemporary man'" Hayek was appointed a

(CH) in the

1984 Birthday Honours Queen's Birthday Honours are announced on or around the date of the Queen's Official Birthday in Australia, Canada, New Zealand and the United Kingdom. The dates vary, both from year to year and from country to country. All are published in supp ...

by Elizabeth II on the advice of British Prime Minister Margaret Thatcher for his "services to the study of economics". Hayek had hoped to receive a

baronet A baronet ( or ; abbreviated Bart or Bt) or the female equivalent, a baronetess (, , or ; abbreviation Btss), is the holder of a baronetcy, a hereditary title awarded by the British Crown. The title of baronet is mentioned as early as the 14t ...

cy and after being awarded the CH sent a letter to his friends requesting that he be called the English version of Friedrich (i.e. Frederick) from now on. After his twenty-minute audience with the Queen, he was "absolutely besotted" with her according to his daughter-in-law Esca Hayek. Hayek said a year later that he was "amazed by her. That ease and skill, as if she'd known me all my life". The audience with the Queen was followed by a dinner with family and friends at the

Institute of Economic Affairs The Institute of Economic Affairs (IEA) is a right-wing pressure group and think tank registered as a UK charity Associated with the New Right, the IEA describes itself as an "educational research institute", and says that it seeks to "further ...

. When later that evening Hayek was dropped off at the Reform Club, he commented: "I've just had the happiest day of my life". In 1991, President George H. W. Bush awarded Hayek the Presidential Medal of Freedom, one of the two highest civilian awards in the United States, for a "lifetime of looking beyond the horizon".

Death

Hayek died on 23 March 1992, aged 92, in Freiburg, Germany and was buried on 4 April in the

Neustift am Walde Until 1892 Neustift am Walde (Central Bavarian: ''Neistift aum Woid'') was an independent municipality in the outskirts of Vienna, Austria and is today a part of Döbling, the 19th district of Vienna. It is also one of the 89 Katastralgemeinden. ...

cemetery in the northern outskirts of Vienna according to the Catholic rite. In 2011, his article "

" was selected as one of the top 20 articles published in '' The American Economic Review'' during its first 100 years. The New York University ''Journal of Law and Liberty'' holds an annual lecture in his honor.

Work

Business cycle

Ludwig von Mises had earlier applied the concept of marginal utility to the value of money in his '' Theory of Money and Credit'' (1912) in which he also proposed an explanation for "industrial fluctuations" based on the ideas of the old

British Currency School The British Currency School was a group of British economists, active in the 1840s and 1850s, who argued that the excessive issuing of banknotes was a major cause of price inflation. They believed that, in order to restrict circulation, issuers of ...

and of Swedish economist Knut Wicksell. Hayek used this body of work as a starting point for his own interpretation of the business cycle, elaborating what later became known as the Austrian theory of the business cycle. Hayek spelled out the Austrian approach in more detail in his book, published in 1929, an English translation of which appeared in 1933 as ''Monetary Theory and the Trade Cycle''. There, Hayek argued for a monetary approach to the origins of the cycle. In his ''Prices and Production'' (1931), Hayek argued that the business cycle resulted from the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...

's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates. Hayek claimed that "the past instability of the market economy is the consequence of the exclusion of the most important regulator of the market mechanism, money, from itself being regulated by the market process". Hayek's analysis was based on

Eugen Böhm von Bawerk Eugen is a masculine given name which may refer to: * Archduke Eugen of Austria (1863–1954), last Habsburg Grandmaster of the Teutonic Order from 1894 to 1923 * Prince Eugen, Duke of Närke (1865–1947), Swedish painter, art collector, and pat ...

's concept of the "average period of production" and on the effects that monetary policy could have upon it. In accordance with the reasoning later outlined in his essay "The Use of Knowledge in Society" (1945), Hayek argued that a monopolistic governmental agency like a central bank can neither possess the relevant information which should govern supply of money, nor have the ability to use it correctly. In 1929, Lionel Robbins assumed the helm of the London School of Economics (LSE). Eager to promote alternatives to what he regarded as the narrow approach of the school of economic thought that then dominated the English-speaking academic world (centered at the University of Cambridge and deriving largely from the work of

Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, and was one of the most influential economists of his time. His book '' Principles of Economics'' (1890) was the dominant economic textbook in England for many years. I ...

), Robbins invited Hayek to join the faculty at LSE, which he did in 1931. According to Nicholas Kaldor, Hayek's theory of the time-structure of capital and of the business cycle initially "fascinated the academic world" and appeared to offer a less "facile and superficial" understanding of

macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, an ...

than the Cambridge school's. Also in 1931, Hayek crititicized

's '' Treatise on Money'' (1930) in his "Reflections on the pure theory of Mr. J.M. Keynes" and published his lectures at the LSE in book form as ''Prices and Production''. For Keynes, unemployment and idle resources are caused by a lack of effective demand, but for Hayek they stem from a previous unsustainable episode of easy money and artificially low interest rates. Keynes asked his friend Piero Sraffa to respond. Sraffa elaborated on the effect of inflation-induced "forced savings" on the capital sector and about the definition of a "natural" interest rate in a growing economy (see Sraffa–Hayek debate). Others who responded negatively to Hayek's work on the business cycle included

and

, who, later on, would share the Sveriges-Riksbank Prize in Economics with him.Bruce Caldwell, ''Hayek's Challenge: An Intellectual Biography of F.A. Hayek'' (Chicago: University of Chicago Press, 2004), p. 179. Kaldor later wrote that Hayek's ''Prices and Production'' had produced "a remarkable crop of critics" and that the total number of pages in British and American journals dedicated to the resulting debate "could rarely have been equalled in the economic controversies of the past". Hayek's work, throughout the 1940s, was largely ignored, except for scathing critiques by Nicholas Kaldor. Lionel Robbins himself, who had embraced the Austrian theory of the business cycle in ''The Great Depression'' (1934), later regretted having written the book and accepted many of the Keynesian counter-arguments. R. W. Garrison
"F.A. Hayek as 'Mr. Fluctooations:' In Defense of Hayek's 'Technical Economics'"
''Hayek Society Journal'' (LSE), 5(2), 1 (2003). Hayek never produced the book-length treatment of "the dynamics of capital" that he had promised in the ''Pure Theory of Capital.'' At the University of Chicago, Hayek was not part of the economics department and did not influence the rebirth of neoclassical theory that took place there (see

Chicago school of economics The Chicago school of economics is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, some of whom have constructed and popularized its principles. Milton Friedman and George Stigl ...

). When in 1974 he shared the Nobel Memorial Prize in Economics with

Myrdal Myrdal is an area in Aurland, Norway. Its only built-out facilities is Myrdal Station on the Bergen Line and the Flåm Line The Flåm Line ( no, Flåmsbana) is a long railway line between Myrdal and Flåm in Aurland Municipality, in Ves ...

, the latter complained about being paired with an "ideologue". Milton Friedman declared himself "an enormous admirer of Hayek, but not for his economics. Milton Friedman also commented on some of his writings, saying "I think ''Prices and Production'' is a very flawed book. I think his 'Pure Theory of Capital''is unreadable. On the other hand, ''The Road to Serfdom'' is one of the great books of our time".

Economic calculation problem

Building on the earlier work of Mises and others, Hayek also argued that while in centrally planned economies an individual or a select group of individuals must determine the distribution of resources, these planners will never have enough information to carry out this allocation reliably. This argument, first proposed by

Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German sociologist, historian, jurist and political economist, who is regarded as among the most important theorists of the development of modern Western society. His ideas prof ...

and Ludwig von Mises, says that the efficient exchange and use of resources can be maintained only through the price mechanism in free markets (see

economic calculation problem The economic calculation problem (sometimes abbreviated ECP) is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article " Eco ...

). In 1935, Hayek published ''Collectivist Economic Planning'', a collection of essays from an earlier debate that had been initiated by Mises. Hayek included Mises's essay in which Mises argued that rational planning was impossible under socialism. Socialist Oskar Lange responded by invoking

general equilibrium theory In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an o ...

, which they argued disproved Mises's thesis. They noted that the difference between a planned and a free market system lay in who was responsible for solving the equations. They argued that if some of the prices chosen by socialist managers were wrong, gluts or shortages would appear, signalling them to adjust the prices up or down, just as in a free market. Through such a trial and error, a socialist economy could mimic the efficiency of a free market system while avoiding its many problems. Hayek challenged this vision in a series of contributions. In "Economics and Knowledge" (1937), he pointed out that the standard equilibrium theory assumed that all agents have full and correct information, and how, in his mind, in the real world different individuals have different bits of knowledge and furthermore some of what they believe is wrong. In "

" (1945), Hayek argued that the price mechanism serves to share and synchronise local and personal knowledge, allowing society's members to achieve diverse and complicated ends through a principle of spontaneous self-organization. He contrasted the use of the price mechanism with central planning, arguing that the former allows for more rapid adaptation to changes in particular circumstances of time and place. Thus, Hayek set the stage for

Oliver Williamson Oliver Eaton Williamson (September 27, 1932 – May 21, 2020) was an American economist, a professor at the University of California, Berkeley, and recipient of the 2009 Nobel Memorial Prize in Economic Sciences, which he shared with Elinor Ost ...

's later contrast between markets and hierarchies as alternative co-ordination mechanisms for economic transactions. He used the term

catallaxy Catallaxy or catallactics is an alternative expression for the word "economy". Whereas the word economy suggests that people in a community possess a common and congruent set of values and goals, catallaxy suggests that the emergent properties o ...

to describe a "self-organizing system of voluntary co-operation". Hayek's research into this argument was specifically cited by the Nobel Committee in its press release awarding Hayek the Nobel prize.

Criticism of collectivism

Hayek was one of the leading academic critics of collectivism in the 20th century. In Hayek's view, the central role of the state should be to maintain the rule of law, with as little arbitrary intervention as possible. In his popular book ''

'' (1944) and in subsequent academic works, Hayek argued that socialism required central economic planning and that such planning in turn leads towards

totalitarianism Totalitarianism is a form of government and a political system that prohibits all opposition parties, outlaws individual and group opposition to the state and its claims, and exercises an extremely high if not complete degree of control and regul ...

. In ''The Road to Serfdom'', Hayek wrote: Hayek posited that a central planning authority would have to be endowed with powers that would impact and ultimately control social life because the knowledge required for centrally planning an economy is inherently decentralised, and would need to be brought under control. Though Hayek did argue that the state should provide law centrally, others have pointed out that this contradicts his arguments about the role of judges in "discovering" the law, suggesting that Hayek would have supported decentralized provision of legal services. Hayek also wrote that the state can play a role in the economy, specifically in creating a safety net, saying:

There is no reason why, in a society which has reached the general level of wealth ours has, the first kind of security should not be guaranteed to all without endangering general freedom; that is: some minimum of food, shelter and clothing, sufficient to preserve health. Nor is there any reason why the state should not help to organize a comprehensive system of social insurance in providing for those common hazards of life against which few can make adequate provision.

The Denationalization of Money ''The Denationalisation of Money'' is a 1976 book by Friedrich Hayek, in which the author advocated the establishment of competitively issued private moneys. In 1978 Hayek published a revised and enlarged edition entitled ''Denationalisation of ...

" is one of his literary works, in which he advocated the establishment of competitions in issuing moneys.

Investment and choice

Hayek made breakthroughs in the choice theory, and examined the inter-relations between non-permanent production goods and "latent" or potentially economic permanent resources, building on the choice theoretical insight that "processes that take more time will evidently not be adopted unless they yield a greater return than those that take less time".

Philosophy of science

During World War II, Hayek began the Abuse of Reason project. His goal was to show how a number of then-popular doctrines and beliefs had a common origin in some fundamental misconceptions about the social science.Caldwell, Bruce. "Hayek, Friedrich August von (1899–1992)." The New Palgrave Dictionary of Economics. Third Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2018. Ideas were developed in ''

The Counter-Revolution of Science ''The Counter-Revolution of Science: Studies on the Abuse of Reason'' is a 1952 book by Nobel laureate economist Friedrich Hayek, in which the author asserts to address the problem of scientism in the social sciences, asserting that researchers an ...

'' in 1952 and in some of Hayek's later essays in the philosophy of science such as "Degrees of Explanation" (1955) and "The Theory of Complex Phenomena" (1964). In ''Counter-Revolution'', for example, Hayek observed that the hard sciences attempt to remove the "human factor" to obtain objective and strictly controlled results: Meanwhile, the soft sciences are attempting to measure human action itself: He notes that these are mutually exclusive and that social sciences should not attempt to impose positivist methodology, nor to claim objective or definite results:

Psychology

Hayek's first academic essay was a psychological work titled 'Contributions to the Theory of the Development of Consciousness' (''Beiträge zur Theorie der Entwicklung des Bewußtseins'') In ''The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology'' (1952), Hayek independently developed a "

Hebbian learning Hebbian theory is a neuroscientific theory claiming that an increase in synaptic efficacy arises from a presynaptic cell's repeated and persistent stimulation of a postsynaptic cell. It is an attempt to explain synaptic plasticity, the adaptatio ...

" model of learning and memory—an idea he first conceived in 1920 prior to his study of economics. Hayek's expansion of the "Hebbian synapse" construction into a global brain theory received attention in neuroscience, cognitive science, computer science, and

evolutionary psychology Evolutionary psychology is a theoretical approach in psychology that examines cognition and behavior from a modern evolutionary perspective. It seeks to identify human psychological adaptations with regards to the ancestral problems they evolv ...

by scientists such as

Gerald Edelman Gerald Maurice Edelman (; July 1, 1929 – May 17, 2014) was an American biologist who shared the 1972 Nobel Prize in Physiology or Medicine for work with Rodney Robert Porter on the immune system. Edelman's Nobel Prize-winning research concer ...

Vittorio Guidano Vittorio Filippo Guidano (4 August 1944, Rome, Italy – 31 August 1999, Buenos Aires, Argentina) was an Italian neuropsychiatrist, creator of the cognitive procedural systemic model and contributor to constructivist post-rationalist cognitive t ...

and Joaquin Fuster. ''The Sensory Order'' can be viewed as a development of his attack on scientism. Hayek posited two orders, namely the sensory order that we experience and the natural order that natural science revealed. Hayek thought that the sensory order actually is a product of the brain. He described the brain as a very complex yet self-ordering hierarchical classification system, a huge network of connections. Because of the nature of the classifier system, richness of our sensory experience can exist. Hayek's description posed problems to

behaviorism Behaviorism is a systematic approach to understanding the behavior of humans and animals. It assumes that behavior is either a reflex evoked by the pairing of certain antecedent stimuli in the environment, or a consequence of that individual ...

, whose proponents took the sensory order as fundamental.

International Relations

Hayek was a lifelong federalist. He joined several pan-European and pro-federalist movements throughout his career, and called for federal ties between the U.K. and Europe, and between Europe and the United States. After the 1950's, when the Cold War began in earnest, Hayek largely kept his federalist proposals out of the public sphere, although he did propose to federate Jerusalem as late as the 1970s. Hayek argued that closer economic ties without closer political ties would lead to more problems because interest groups in nation-states would best be able to counter the internationalization of markets that comes with closer economic ties by appealing to nationalism. Much of his time in the pro-federalist and pan-European groups was spent arguing with pro-federal and pan-European democratic socialists over the proper extent of a world federal government. Hayek argued that such a world government should do little more than act as a negative check on national sovereignties and serve as a focal point for collective defense. As the Cold War heated up, Hayek grew more hawkish and he pushed his federal proposals onto the backburner in favor of more traditional public policy proposals that acknowledged and respected the sovereignty of nation-states. Yet Hayek never disavowed his famous call for "the abrogation of national sovereignties" and his lifetime of work in the area of international relations continues to attract attention from scholars searching for federalist answers to contemporary problems in international relations.

Social and political philosophy

In the latter half of his career, Hayek made a number of contributions to social and political philosophy which he based on his views on the limits of human knowledge and the idea of spontaneous order in social institutions. He argues in favour of a society organised around a market order in which the apparatus of state is employed almost (though not entirely) exclusively to enforce the legal order (consisting of abstract rules and not particular commands) necessary for a market of free individuals to function. These ideas were informed by a moral philosophy derived from epistemological concerns regarding the inherent limits of human knowledge. Hayek argued that his ideal individualistic and free-market polity would be self-regulating to such a degree that it would be "a society which does not depend for its functioning on our finding good men for running it". Although Hayek believed in a society governed by laws, he disapproved of the notion of " social justice". He compared the market to a game in which "there is no point in calling the outcome just or unjust" and argued that "social justice is an empty phrase with no determinable content".''The Mirage of Social Justice'', chap. 12 Likewise, "the results of the individual's efforts are necessarily unpredictable, and the question as to whether the resulting distribution of incomes is just has no meaning". He generally regarded government redistribution of income or capital as an unacceptable intrusion upon individual freedom, saying that "the principle of distributive justice, once introduced, would not be fulfilled until the whole of society was organized in accordance with it. This would produce a kind of society which in all essential respects would be the opposite of a free society".

Spontaneous order

Hayek viewed the

free price system A free price system or free price mechanism (informally called ''the price system'' or ''the price mechanism'') is a mechanism of resource allocation that relies upon prices set by the interchange of supply and demand. The resulting price signals ...

not as a conscious invention (that which is intentionally designed by man), but as spontaneous order or what Scottish philosopher Adam Ferguson referred to as "the result of human action but not of human design". For instance, Hayek put the price mechanism on the same level as language, which he developed in his price signal theory. Hayek attributed the birth of civilisation to

private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property and personal property, which is owned by a state entity, and from collective or c ...

in his book '' The Fatal Conceit'' (1988). He explained that

price signals A price signal is information conveyed to consumers and producers, via the prices offered or requested for, and the amount requested or offered of a product or service, which provides a signal to increase or decrease quantity supplied or quanti ...

are the only means of enabling each economic decision maker to communicate tacit knowledge or

dispersed knowledge Dispersed knowledge in economics is the notion that no single agent has information as to all of the factors which influence prices and production throughout the system. The term has been both expanded upon and popularized by American economist Th ...

to each other to solve the economic calculation problem.

Alain de Benoist Alain de Benoist (; ; born 11 December 1943) – also known as Fabrice Laroche, Robert de Herte, David Barney, and other pen names – is a French journalist and political philosopher, a founding member of the Nouvelle Droite ("New Right"), and ...

of the '' Nouvelle Droite'' (New Right) produced a highly critical essay on Hayek's work in an issue of ''

Telos Telos (; ) is a term used by philosopher Aristotle to refer to the final cause of a natural organ or entity, or of a work of human art. Intentional actualization of potential or inherent purpose,"Telos.''Philosophy Terms'' Retrieved 3 May 2020. ...

'', citing the flawed assumptions behind Hayek's idea of "spontaneous order" and the authoritarian and totalising implications of his free-market ideology. Hayek's concept of the market as a spontaneous order was recently applied to ecosystems to defend a broadly non-interventionist policy. Like the market, ecosystems contain complex networks of information, involve an ongoing dynamic process, contain orders within orders and the entire system operates without being directed by a conscious mind. On this analysis, species takes the place of price as a visible element of the system formed by a complex set of largely unknowable elements. Human ignorance about the countless interactions between the organisms of an ecosystem limits our ability to manipulate nature. Hayek's price signal concept is in relation to how consumers are often unaware of specific events that change market, yet change their decisions, simply because the price goes up. Thus pricing communicates information.

Social safety nets

With regard to a social safety net, Hayek advocated "some provision for those threatened by the extremes of indigence or starvation due to circumstances beyond their control" and argued that the "necessity of some such arrangement in an industrial society is unquestioned—be it only in the interest of those who require protection against acts of desperation on the part of the needy". Summarizing Hayek's views on the topic, journalist

Nicholas Wapshott Nicholas Henry Wapshott (born 13 January 1952) is a British journalist, broadcaster and author. He was most recently the opinion editor at Newsweek, and a Reuters contributing columnist on the political economy. He has been an online content co ...

has argued that " ayekadvocated mandatory universal health care and unemployment insurance, enforced, if not directly provided, by the state".

Critical theorist A critical theory is any approach to social philosophy that focuses on society and culture to reveal, critique and challenge power structures. With roots in sociology and literary criticism, it argues that social problems stem more from socia ...

Bernard Harcourt Bernard E. Harcourt (born 1963) is an American critical theorist with a specialization in the area of punishment, surveillance, legal and political theory, and political economy. He also does pro-bono legal work on human rights issues. He is a p ...

has argued further that "Hayek was adamant about this". In 1944, Hayek wrote in ''

'': In 1973, Hayek reiterated in '' Law, Legislation and Liberty'':

There is no reason why in a free society government should not assure to all, protection against severe deprivation in the form of an assured minimum income, or a floor below which nobody need to descend. To enter into such an insurance against extreme misfortune may well be in the interest of all; or it may be felt to be a clear moral duty of all to assist, within the organised community, those who cannot help themselves. So long as such a uniform minimum income is provided outside the market to all those who, for any reason, are unable to earn in the market an adequate maintenance, this need not lead to a restriction of freedom, or conflict with the Rule of law.

Political theorist Adam James Tebble has argued that Hayek's concession of a social minimum provided by the state introduces a conceptual tension with his epistemically-derived commitment to

private property rights Property rights are constructs in economics for determining how a resource or economic good is used and owned, which have developed over ancient and modern history, from Abrahamic law to Article 17 of the Universal Declaration of Human Rights. R ...

free markets In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any o ...

, and spontaneous order.

Liberalism and skepticism

Arthur M. Diamond argues Hayek's problems arise when he goes beyond claims that can be evaluated within economic science. Diamond argued:

The human mind, Hayek says, is not just limited in its ability to synthesize a vast array of concrete facts, it is also limited in its ability to give a deductively sound ground to ethics. Here is where the tension develops, for he also wants to give a reasoned moral defense of the free market. He is an intellectual skeptic who wants to give political philosophy a secure intellectual foundation. It is thus not too surprising that what results is confused and contradictory.

Chandran Kukathas Chandran Kukathas (born 12 September 1957) is a Malaysian-born Australian political theorist and the author of several books. Until 2019 he was Head of the Department of Government at the London School of Economics, where he held a Chair in Poli ...

argues that Hayek's defence of liberalism is unsuccessful because it rests on presuppositions that are incompatible. The unresolved dilemma of his political philosophy is how to mount a systematic defence of liberalism if one emphasizes the limited capacity of reason. Norman P. Barry similarly notes that the "critical rationalism" in Hayek's writings appears incompatible with "a certain kind of fatalism, that we must wait for evolution to pronounce its verdict". Milton Friedman and

Anna Schwartz Anna Jacobson Schwartz (pronounced ; November 11, 1915 – June 21, 2012) was an American economist who worked at the National Bureau of Economic Research in New York City and a writer for ''The New York Times''. Paul Krugman has said that Schwar ...

argue that the element of paradox exists in the views of Hayek. Noting Hayek's vigorous defense of "invisible hand" evolution that Hayek claimed created better economic institutions than could be created by rational design, Friedman pointed out the irony that Hayek was then proposing to replace the monetary system thus created with a deliberate construct of his own design.

John N. Gray John Nicholas Gray (born 17 April 1948) is an English political philosopher and author with interests in analytic philosophy, the history of ideas, and philosophical pessimism. He retired in 2008 as School Professor of European Thought at the ...

summarized this view as "his scheme for an ultra-liberal constitution was a prototypical version of the philosophy he had attacked". Bruce Caldwell wrote that " one is judging his work against the standard of whether he provided a finished political philosophy, Hayek clearly did not succeed", although he thinks that "economists may find Hayek's political writings useful".

Dictatorship and totalitarianism

Hayek sent

António de Oliveira Salazar António de Oliveira Salazar (, , ; 28 April 1889 – 27 July 1970) was a Portuguese dictator who served as President of the Council of Ministers from 1932 to 1968. Having come to power under the ("National Dictatorship"), he reframed the re ...

a copy of ''

'' (1960) in 1962. Hayek hoped that his book—this "preliminary sketch of new constitutional principles"—"may assist" Salazar "in his endeavour to design a constitution which is proof against the abuses of democracy". Hayek visited Chile in the 1970s and 1980s during the Government Junta of general

Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, , , ; 25 November 1915 – 10 December 2006) was a Chilean general who ruled Chile from 1973 to 1990, first as the leader of the Military Junta of Chile from 1973 to 1981, being declared President of ...

and accepted being appointed Honorary Chairman of the

Centro de Estudios Públicos Centro de Estudios Públicos (CEP) is a non-profit Chilean think tank founded in 1980. Its stated mission is to “contribute to the development of a free and democratic society” through: 1) the analysis and dissemination of philosophical, pol ...

, the think tank formed by the economists who transformed Chile into a free market economy. Asked about the

military dictatorship of Chile A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...

by a Chilean interviewer, Hayek is translated from German to Spanish to English as having said the following:

As long term institutions, I am totally against dictatorships. But a dictatorship may be a necessary system for a transitional period. ..Personally I prefer a liberal dictatorship to democratic government devoid of liberalism. My personal impression—and this is valid for South America—is that in Chile, for example, we will witness a transition from a dictatorial government to a liberal government.

In a letter to the ''

London Times ''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper ''The Sunday Times'' (fo ...

'', he defended the Pinochet regime and said that he had "not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende". Hayek admitted that "it is not very likely that this will succeed, even if, at a particular point in time, it may be the only hope there is", but he explained that " is not certain hope, because it will always depend on the goodwill of an individual, and there are very few individuals one can trust. But if it is the sole opportunity which exists at a particular moment it may be the best solution despite this. And only if and when the dictatorial government is visibly directing its steps towards limited democracy". For Hayek, the distinction between authoritarianism and totalitarianism has much importance and he was at pains to emphasise his opposition to totalitarianism, noting that the concept of transitional dictatorship which he defended was characterised by authoritarianism, not totalitarianism. For example, when Hayek visited Venezuela in May 1981, he was asked to comment on the prevalence of totalitarian regimes in Latin America. In reply, Hayek warned against confusing "totalitarianism with authoritarianism" and said that he was unaware of "any totalitarian governments in Latin America. The only one was Chile under Allende". For Hayek, the word "totalitarian" signifies something very specific, namely the intention to "organize the whole of society" to attain a "definite social goal" which is stark in contrast to "liberalism and individualism". He claimed that democracy can also be repressive and totalitarian; in ''

'' he often refers to

Jacob Talmon Jacob Leib Talmon (Hebrew: יעקב טלמון; June 14, 1916 – June 16, 1980) was Professor of Modern History at the Hebrew University of Jerusalem. He has been described as a 'Cold War liberal' because of the anti-Marxism which permeates hi ...

's concept of

totalitarian democracy Totalitarian democracy or anarcho-monarchism is a term popularized by Israeli historian Jacob Leib Talmon to refer to a system of government in which lawfully elected representatives maintain the integrity of a nation state whose citizens, whil ...

Immigration, nationalism and race

Hayek was skeptical about international immigration and supported Thatcher's anti-immigration policies. In '' Law, Legislation and Liberty'' he elaborated:

Freedom of migration is one of the widely accepted and wholly admirable principles of liberalism. But should this generally give the stranger a right to settle down in a community in which he is not welcome? Has he a claim to be given a job or be sold a house if no resident is willing to do so? He clearly should be entitled to accept a job or buy a house if offered to him. But have the individual inhabitants a duty to offer either to him? Or ought it to be an offence if they voluntarily agree not to do so? Swiss and Tyrolese villages have a way of keeping out strangers which neither infringe nor rely on any law. Is this anti-liberal or morally justified? For established old communities I have no certain answers to these questions.

He was mainly preoccupied with practical problems concerning immigration:

There exist, of course, other reasons why such restrictions appear unavoidable so long as certain differences in national or ethnic traditions (especially differences in the rate of propagation) exist-which in turn are not likely to disappear so long as restrictions on migration continue. We must face the fact that we here encounter a limit to the universal application of those liberal principles of policy which the existing facts of the present world make unavoidable.

He was not sympathetic to

nationalist Nationalism is an idea and movement that holds that the nation should be congruent with the State (polity), state. As a movement, nationalism tends to promote the interests of a particular nation (as in a in-group and out-group, group of peo ...

ideas and was afraid that mass immigration might revive nationalist sentiment among domestic population and ruin the postwar progress that was made among Western nations.Hayek, Friedrich (1976) ''Law, Legislation and Liberty, Volume 2: The Mirage of Social Justice''. Routledge 1982. p 58) He additionally explained:

However far modern man accepts in principle the ideal that the same rules should apply to all men, in fact he does concede it only to those whom he regards as similar to himself, and only slowly learns to extend the range of those he does accept as his likes. There is little legislation can do to speed up this process and much it may do to reverse it by re-awakening sentiments that are already on the wane.

Despite his opposition to nationalism, Hayek made numerous controversial and inflammatory comments about specific ethnic groups. Answering an interview question about people he cannot deal with he mentioned his dislike of Middle Eastern populations, claiming they were dishonest, and also expressed "profound dislike" of Indian students at London School of Economics, saying that were usually "detestable sons of

Bengali Bengali or Bengalee, or Bengalese may refer to: *something of, from, or related to Bengal, a large region in South Asia * Bengalis, an ethnic and linguistic group of the region * Bengali language, the language they speak ** Bengali alphabet, the w ...

moneylenders". He claimed that his attitude is not based on any racial feeling. During World War II he discussed the possibility of sending his children to the United States, but was concerned that they might be placed with a "coloured family". In a later interview, questioned about his attitude towards

Black people Black is a racialized classification of people, usually a political and skin color-based category for specific populations with a mid to dark brown complexion. Not all people considered "black" have dark skin; in certain countries, often in ...

, he said laconically that he "did not like dancing Negroes" and on another occasion he ridiculed the decision to award the Nobel Peace Prize to

Martin Luther King Jr. Martin Luther King Jr. (born Michael King Jr.; January 15, 1929 – April 4, 1968) was an American Baptist minister and activist, one of the most prominent leaders in the civil rights movement from 1955 until his assassination in 1968 ...

Leeson, Robert (2018) ''Hayek: A Collaborative Biography: Part XV: The Chicago School of Economics, Hayek's 'Luck' and the 1974 Nobel Prize for Economic Science.'' Palgrave Macmillan, 2015. p. 175 He also made negative comments about awarding the Prize to

Ralph Bunche Ralph Johnson Bunche (; August 7, 1904 – December 9, 1971) was an American political scientist, diplomat, and leading actor in the mid-20th-century decolonization process and US civil rights movement, who received the 1950 Nobel Peace Prize f ...

Albert Luthuli Albert John Mvumbi Luthuli ( – 21 July 1967) was a South African anti-apartheid activist, traditional leader, and politician who served as the President-General of the African National Congress from 1952 until his death in 1967. Luthuli w ...

, and his LSE colleague W. Arthur Lewis who he described as an "unusually able West Indian negro". In 1978 Hayek made a month-long visit to South Africa (his third) where he gave numerous lectures, interviews, and met prominent politicians and business leaders, unconcerned about possible propagandistic effect of his tour for

Apartheid Apartheid (, especially South African English: , ; , "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. Apartheid wa ...

regime. He expressed his opposition to some of the government policies, believing that publicly funded institutions should treat all citizens equally, but also claimed that private institutions have the right to discriminate. Additionally, he condemned the "scandalous" hostility and interference of the international community in South African internal affairs. He further explained his attitude:

People in South Africa have to deal with their own problems, and the idea that you can use external pressure to change people, who after all have built up a civilization of a kind, seems to me morally a very doubtful belief.

While Hayek gave somewhat ambiguous comments on the injustices of Apartheid and proper role of the state, some of his Mont Pelerin colleagues, such as John Davenport and

Wilhelm Röpke Wilhelm Röpke (October 10, 1899 – February 12, 1966) was a German economist and social critic, best known as one of the spiritual fathers of the social market economy. A Professor of Economics, first in Jena, then in Graz, Marburg, Ista ...

, were more ardent supporters of South African government and criticized Hayek for being too soft on the subject.

Inequality and class

Hayek claimed that the idea that "all men are born equal" is untrue because evolution and genetic differences have created "boundless variety of human nature". He emphasized the importance of

nature Nature, in the broadest sense, is the physical world or universe. "Nature" can refer to the phenomena of the physical world, and also to life in general. The study of nature is a large, if not the only, part of science. Although humans are p ...

, complaining that it became too fashionable to ascribe all human differences to environment. Hayek defended

economic inequality There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of w ...

, believing that the existence of wealthy class is important not only for economic reasons—accumulating capital and directing investments—but also for political, cultural, scientific and conservationist goals which are often financed and promoted by

philanthropists Philanthropy is a form of altruism that consists of "private initiatives, for the public good, focusing on quality of life". Philanthropy contrasts with business initiatives, which are private initiatives for private good, focusing on material ...

. Since the market mechanism cannot provide for all societal needs, some of which are outside of economic calculation, existence of wealthy individuals guarantees the efficiency and pluralism in their development and realization, which could not be guaranteed in the case of state monopoly. Individual wealth offers independence and can create intellectual, moral, political and artistic leaders which are not employed and influenced by the state. According to Hayek the society benefits from having a hereditary wealthy class because individuals born in it don't have to devote their energy to earning a living and can devote themselves to other purposes such as experimenting with different ideas, hobbies and lifestyles which can later be adopted by broader society.Hayek, Friedrich (1960) ''The Constitution of Liberty''. Routledge, 2006. p. 110 In ''

'' he wrote:

Yet is it really so obvious that the tennis or golf professional is a more useful member of society than the wealthy amateurs who devoted their time to perfecting these games? Or that the paid curator of a public museum is more useful than a private collector? Before the reader answers these questions too hastily, I would ask him to consider whether there would ever have been golf or tennis professionals or museum curators if wealthy amateurs had not preceded them. Can we not hope that other new interests will still arise from the playful explorations of those who can indulge in them for the short span of a human life? It is only natural that the development of the art of living and of the non-materialistic values should have profited most from the activities of those who had no material worries.

He contrasted individuals who inherited wealth, with upper class values and education, with the ''

nouveau riche ''Nouveau riche'' (; ) is a term used, usually in a derogatory way, to describe those whose wealth has been acquired within their own generation, rather than by familial inheritance. The equivalent English term is the "new rich" or "new money" ...

'' who often use their wealth in more vulgar ways. He decried the disappearance of such leisured aristocratic class, claiming that contemporary Western elites are usually business groups that lack intellectual leadership and coherent "philosophy of life" and use their wealth mostly for economic purposes. Hayek was against high taxes on inheritance, believing that it is natural function of the family to transmit standards, traditions and material goods. Without transmission of property, parents might try to secure the future of their children by placing them in prestigious and high-paying positions, as was customary in socialist countries, which creates even worse injustices. He was also strongly against

progressive taxation A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progr ...

, noting that in most countries additional taxes paid by the rich amount to insignificantly small amount of total tax revenue and that the only major result of the policy is "gratification of the envy of the less-well-off". He also claimed that it is contrary to idea of equality under law and against democratic principle that majority should not impose discriminatory rules against minority.

Influence and recognition

Hayek's influence on the development of economics is widely acknowledged. With regard to the popularity of his Nobel acceptance lecture, Hayek is the second-most frequently cited economist (after

Kenneth Arrow Kenneth Joseph Arrow (23 August 1921 – 21 February 2017) was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972. In economi ...

) in the Nobel lectures of the prize winners in economics. Hayek wrote critically there of the field of orthodox economics and neo-classical modelisation. A number of Nobel Laureates in economics, such as Vernon Smith and Herbert A. Simon, recognise Hayek as the greatest modern economist. Another Nobel winner, Paul Samuelson, believed that Hayek was worthy of his award, but nevertheless claimed that "there were good historical reasons for fading memories of Hayek within the mainstream last half of the twentieth century economist fraternity. In 1931, Hayek's ''Prices and Production'' had enjoyed an ultra-short Byronic success. In retrospect hindsight tells us that its mumbo-jumbo about the period of production grossly misdiagnosed the macroeconomics of the 1927–1931 (and the 1931–2007) historical scene". Despite this comment, Samuelson spent the last 50 years of his life obsessed with the problems of capital theory identified by Hayek and Böhm-Bawerk, and Samuelson flatly judged Hayek to have been right and his own teacher Joseph Schumpeter to have been wrong on the central economic question of the 20th century, the feasibility of socialist economic planning in a production goods dominated economy. Hayek is widely recognised for having introduced the time dimension to the equilibrium construction and for his key role in helping inspire the fields of

growth theory Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...

information economics Information economics or the economics of information is the branch of microeconomics that studies how information and information systems affect an economy and economic decisions. One application considers information embodied in certain types o ...

and the theory of spontaneous order. The "informal" economics presented in Milton Friedman's massively influential popular work '' Free to Choose'' (1980) is explicitly Hayekian in its account of the price system as a system for transmitting and co-ordinating knowledge. This can be explained by the fact that Friedman taught Hayek's famous paper "The Use of Knowledge in Society" (1945) in his graduate seminars. In 1944, he was elected as a Fellow of the

British Academy The British Academy is the United Kingdom's national academy for the humanities and the social sciences. It was established in 1902 and received its royal charter in the same year. It is now a fellowship of more than 1,000 leading scholars span ...

after he was nominated for membership by Keynes. Harvard economist and former Harvard University President Lawrence Summers explains Hayek's place in modern economics: "What's the single most important thing to learn from an economics course today? What I tried to leave my students with is the view that the invisible hand is more powerful than the nidden hand. Things will happen in well-organized efforts without direction, controls, plans. That's the consensus among economists. That's the Hayek legacy". By 1947, Hayek was an organiser of the Mont Pelerin Society, a group of

classical liberals Classical liberalism is a political tradition and a branch of liberalism that advocates free market and laissez-faire economics; civil liberties under the rule of law with especial emphasis on individual autonomy, limited government, eco ...

who sought to oppose socialism. Hayek was also instrumental in the founding of the

, the

right-wing libertarian Right-libertarianism,Rothbard, Murray (1 March 1971)"The Left and Right Within Libertarianism" ''WIN: Peace and Freedom Through Nonviolent Action''. 7 (4): 6–10. Retrieved 14 January 2020.Goodway, David (2006). '' Anarchist Seeds Beneath the ...

and free-market think tank that inspired Thatcherism. He was in addition a member of the conservative and libertarian

Philadelphia Society The Philadelphia Society is a membership organization the purpose of which is "to sponsor the interchange of ideas through discussion and writing, in the interest of deepening the intellectual foundation of a free and ordered society, and of bro ...

. Hayek had a long-standing and close friendship with philosopher of science

Karl Popper Sir Karl Raimund Popper (28 July 1902 – 17 September 1994) was an Austrian-British philosopher, academic and social commentator. One of the 20th century's most influential philosophers of science, Popper is known for his rejection of the c ...

, who was also from Vienna. In a letter to Hayek in 1944, Popper stated: "I think I have learnt more from you than from any other living thinker, except perhaps

Alfred Tarski Alfred Tarski (, born Alfred Teitelbaum;School of Mathematics and Statistics, University of St Andrews ''School of Mathematics and Statistics, University of St Andrews''. January 14, 1901 – October 26, 1983) was a Polish-American logician a ...

". Popper dedicated his ''Conjectures and Refutations'' to Hayek. For his part, Hayek dedicated a collection of papers, ''Studies in Philosophy, Politics, and Economics'', to Popper and in 1982 said that "ever since his ''Logik der Forschung'' first came out in 1934, I have been a complete adherent to his general theory of methodology". Popper also participated in the inaugural meeting of the Mont Pelerin Society. Their friendship and mutual admiration do not change the fact that there are important differences between their ideas. Hayek also played a central role in Milton Friedman's intellectual development. Friedman wrote:

My interest in public policy and political philosophy was rather casual before I joined the faculty of the University of Chicago. Informal discussions with colleagues and friends stimulated a greater interest, which was reinforced by Friedrich Hayek's powerful book The Road to Serfdom, by my attendance at the first meeting of the Mont Pelerin Society in 1947, and by discussions with Hayek after he joined the university faculty in 1950. In addition, Hayek attracted an exceptionally able group of students who were dedicated to a libertarian ideology. They started a student publication, The New Individualist Review, which was the outstanding libertarian journal of opinion for some years. I served as an adviser to the journal and published a number of articles in it....

While Friedman often mentioned Hayek as an important influence, Hayek rarely mentioned Friedman. He deeply disagreed with Chicago School methodology, quantitative and macroeconomic focus, and claimed that Friedman's '' Essays in Positive Economics'' was as dangerous a book as Keynes' '' General Theory''. Friedman also claimed that despite some Popperian influence Hayek always retained basic Misesian

praxeological In philosophy, praxeology or praxiology (; ) is the theory of human action, based on the notion that humans engage in purposeful behavior, contrary to reflexive behavior and other unintentional behavior. French social philosopher Alfred Espinas ...

view which he found "utterly nonsensical". He also noted that he admired Hayek only for his political works, and disagreed with his technical economics; he called ''Prices and Production'' a "very flawed book" and ''The Pure Theory of Capital'' "unreadable". There were occasional tensions at the Mont Pelerin meetings between the Hayek's and Friedman's followers that sometimes threatened to split the Society. Although they worked at the same university and shared political beliefs, Hayek and Friedman rarely collaborated professionally and were not close friends. Hayek's greatest intellectual debt was to

, who pioneered an approach to social explanation similar to that developed in Britain by

Bernard Mandeville Bernard Mandeville, or Bernard de Mandeville (; 15 November 1670 – 21 January 1733), was an Anglo-Dutch philosopher, political economist and satirist. Born in Rotterdam, Netherlands, he lived most of his life in England and used English for ...

and the Scottish moral philosophers in the Scottish Enlightenment. He had a wide-reaching influence on contemporary economics, politics, philosophy, sociology, psychology and anthropology. For example, Hayek's discussion in ''The Road to Serfdom'' (1944) about truth, falsehood and the use of language influenced some later opponents of

postmodernism Postmodernism is an intellectual stance or mode of discourseNuyen, A.T., 1992. The Role of Rhetorical Devices in Postmodernist Discourse. Philosophy & Rhetoric, pp.183–194. characterized by skepticism toward the " grand narratives" of moderni ...

. Some radical libertarians had a negative view of Hayek and his milder form of liberalism.

Ayn Rand Alice O'Connor (born Alisa Zinovyevna Rosenbaum;, . Most sources transliterate her given name as either ''Alisa'' or ''Alissa''. , 1905 – March 6, 1982), better known by her pen name Ayn Rand (), was a Russian-born American writer and p ...

disliked him, seeing him as a conservative and compromiser. In a letter to Rose Wilder Lane in 1946 she wrote:

Now to your question: 'Do those almost with us do more harm than 100% enemies?' I don't think this can be answered with a flat 'yes' or 'no,' because the 'almost' is such a wide term. There is one general rule to observe: those who are with us, but merely do not go far enough are the ones who may do us some good. Those who agree with us in some respects, yet preach contradictory ideas at the same time, are definitely more harmful than 100% enemies. As an example of the kind of 'almost' I would tolerate, I'd name Ludwig von Mises. As an example of our most pernicious enemy, I would name Hayek. That one is real poison.

Hayek made no known written references to Rand. Wikipedia co-founder Jimmy Wales was influenced by Hayek's ideas on spontaneous order and the Austrian School of economics, after being exposed to these ideas by Austrian economist and

Mises Institute Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think tank headquartered in Auburn, Alabama, United States. It is named after the Austrian School economist Ludwig von Mises (1881–1973). It wa ...

Senior Fellow Mark Thornton.

Hayek and conservatism

Hayek received new attention in the 1980s and 1990s with the rise of conservative governments in the United States, United Kingdom and Canada. After winning the

1979 United Kingdom general election The 1979 United Kingdom general election was held on Thursday 3 May 1979 to elect 635 members to the British House of Commons. The Conservative Party, led by Margaret Thatcher, ousted the incumbent Labour government of James Callaghan with ...

, Margaret Thatcher appointed Keith Joseph, the director of the Hayekian

Centre for Policy Studies The Centre for Policy Studies (CPS) is a think tank and pressure group in the United Kingdom. Its goal is to promote coherent and practical policies based on its founding principles of: free markets, "small state," low tax, national independ ...

, as her secretary of state for industry in an effort to redirect parliament's economic strategies. Likewise,

David Stockman David Alan Stockman (born November 10, 1946) is an American politician and former businessman who was a Republican U.S. Representative from the state of Michigan (1977–1981) and the Director of the Office of Management and Budget (1981–1985) ...

, Ronald Reagan's most influential financial official in 1981, was an acknowledged follower of Hayek. Hayek wrote an essay, "Why I Am Not a Conservative" (included as an appendix to ''

''). In it he disparaged conservatism for its inability to adapt to changing human realities or to offer a positive political program, remarking: "Conservatism is only as good as what it conserves". Although he noted that modern day

American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the "United States" or "America" ** Americans, citizens and nationals of the United States of America ** American ancestry, pe ...

and British conservatism share many opinions on economics with classical liberals, particularly a belief in the

free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ...

, he believed it is because conservatism wants to "stand still" whereas liberalism embraces the free market because it "wants to go somewhere". He was much more critical of conservativism in continental Europe which he saw as more similar to socialism. European conservatives, according to Hayek, are similar to socialists in their belief that social and political problems can be solved by placing right people in governmental positions and giving them the opportunity to rule without much restrictions. Both are less concerned with "limiting state power" and more concerned with "arbitrarily" using that power to promote their own goals and "force" their values on other people. Hayek also disliked what he saw as a conservative tendency to obscurantism, such as rejection of theory of evolution and naturalistic explanations of life because of moral consequences that follow from them. He opposed conservatism for "its hostility to internationalism and its proneness to a strident nationalism", with its frequent association with imperialism. He also criticized the intolerance and lack of pluralism:

What I mean is that he onservativehas no political principles which enable him to work with people whose moral values differ from his own for a political order in which both can obey their convictions. It is the recognition of such principles that permits the coexistence of different sets of values that makes it possible to build a peaceful society with a minimum of force. The acceptance of such principles means that we agree to tolerate much that we dislike. There are many values of the conservative which appeal to me more than those of the socialists; yet for a liberal the importance he personally attaches to specific goals is no sufficient justification for forcing others to serve them.

Hayek identified himself as a classical liberal, but noted that in the United States it had become almost impossible to use "liberal" in its original definition and the term " libertarian" was used instead. He also found libertarianism a term "singularly unattractive" and offered the term "Old Whig" (a phrase borrowed from Edmund Burke) instead. In his later life, he said: "I am becoming a Burkean Whig". Whiggery as a political doctrine had little affinity for classical political economy, the tabernacle of the Manchester School and

William Gladstone William Ewart Gladstone ( ; 29 December 1809 – 19 May 1898) was a British statesman and Liberal politician. In a career lasting over 60 years, he served for 12 years as Prime Minister of the United Kingdom, spread over four non-conse ...

. In his 1956 preface to

, Hayek summarized all his disagreements with conservatism in this way:

Conservatism, though a necessary element in any stable society, is not a social program; in its paternalistic, nationalistic, and poweradoring tendencies it is often closer to socialism than true liberalism; and with its traditionalistic, anti-intellectual, and often mystical propensities it will never, except in short periods of disillusionment, appeal to the young and all those others who believe that some changes are desirable if this world is to become a better place. A conservative movement, by its very nature, is bound to be a defender of established privilege and to lean on the power of government for the protection of privilege. The essence of the liberal position, however, is the denial of all privilege, if privilege is understood in its proper and original meaning of the state granting and protecting rights to some which are not available on equal terms to others.

Samuel Brittan Sir Samuel Brittan (29 December 1933 – 12 October 2020) was an English journalist and author. He was the first economics correspondent for the ''Financial Times'', and later a long-time columnist. He was a member of the Academic Advisory Council ...

, concluded in 2010 that "Hayek's book 'The Constitution of Liberty''is still probably the most comprehensive statement of the underlying ideas of the moderate free market philosophy espoused by neoliberals".Samuel Brittan, "The many faces of liberalism,
ft.com
22 January 2010 Brittan adds that although Raymond Plant (2009) comes out in the end against Hayek's doctrines, Plant gives ''The Constitution of Liberty'' a "more thorough and fair-minded analysis than it has received even from its professed adherents". As a neo-liberal, he helped found the Mont Pelerin Society, a prominent neo-liberal think tank where many other minds, such as Mises and Friedman gathered. Although Hayek is likely a student of the neo-liberal school of libertarianism, he is nonetheless influential in the conservative movement, mainly for his critique of

collectivism Collectivism may refer to: * Bureaucratic collectivism, a theory of class society whichto describe the Soviet Union under Joseph Stalin * Collectivist anarchism, a socialist doctrine in which the workers own and manage the production * Collectivi ...

Hayek and policy discussions

Hayek's ideas on spontaneous order and the importance of prices in dealing with the knowledge problem inspired a debate on economic development and transition economies after the fall of the Berlin wall. For instance, economist

Peter Boettke Peter Joseph Boettke (; born January 3, 1960) is an American economist of the Austrian School. He is currently a professor of economics and philosophy at George Mason University; the BB&T Professor for the Study of Capitalism, vice president for ...

elaborated in detail on why reforming socialism failed and the Soviet Union broke down. Economist Ronald McKinnon uses Hayekian ideas to describe the challenges of transition from a centralized state and planned economy to a market economy. Former World Bank Chief Economist William Easterly emphasizes why foreign aid tends to have no effect at best in books such as ''The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good''. Since the 2007–2008 financial crisis, there is a renewed interest in Hayek's core explanation of boom-and-bust cycles, which serves as an alternative explanation to that of the savings glut as launched by economist and former Federal Reserve Chair

Ben Bernanke Ben Shalom Bernanke ( ; born December 13, 1953) is an American economist who served as the 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Fed, he was appointed a distinguished fellow at the Brookings Institution. Duri ...

. Economists at the

Bank for International Settlements The Bank for International Settlements (BIS) is an international financial institution owned by central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work thr ...

, e.g. William R. White, emphasize the importance of Hayekian insights and the impact of monetary policies and credit growth as root causes of financial cycles. Andreas Hoffmann and Gunther Schnabl provide an international perspective and explain recurring financial cycles in the world economy as consequence of gradual interest rate cuts led by the central banks in the large advanced economies since the 1980s. Nicolas Cachanosky outlines the impact of American monetary policy on the production structure in Latin America. In line with Hayek, an increasing number of contemporary researchers sees expansionary monetary policies and too low interest rates as mal-incentives and main drivers of financial crises in general and the subprime market crisis in particular. To prevent problems caused by monetary policy, Hayekian and Austrian economists discuss alternatives to current policies and organizations. For instance, Lawrence H. White argued in favor of free banking in the spirit of Hayek's " Denationalization of Money". Along with market monetarist economist

Scott Sumner Scott B. Sumner (born 1955) is an American economist. He is the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University, a Research Fellow at the Independent Institute, and professor who teaches at Bentle ...

, White also noted that the monetary policy norm that Hayek prescribed, first in ''Prices and Production'' (1931) and as late as the 1970s, was the stabilization of nominal income. Hayek's ideas find their way into the discussion of the post-

Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...

issues of secular stagnation. Monetary policy and mounting regulation are argued to have undermined the innovative forces of the market economies. Quantitative easing following the financial crises is argued to have not only conserved structural distortions in the economy, leading to a fall in trend-growth. It also created new distortions and contributes to distributional conflicts.

Central European politics

In the 1970s and 1980s, the writings of Hayek were a major influence on some of the future postsocialist economic and political elites in Central and Eastern Europe. Supporting examples include the following:

Personal life

In August 1926, Hayek married Helen Berta Maria von Fritsch (1901–1960), a secretary at the civil service office where he worked. They had two children together. Upon the close of World War II, Hayek restarted a relationship with an old girlfriend, who had married since they first met, but kept it secret until 1948. Hayek and Fritsch divorced in July 1950 and he married his cousin Helene Bitterlich (1900–1996) just a few weeks later, after moving to Arkansas to take advantage of permissive divorce laws.Ebenstein, p. 155. His wife and children were offered settlement and compensation for accepting a divorce. The divorce caused some scandal at LSE, where certain academics refused to have anything to do with Hayek. In a 1978 interview to explain his actions, Hayek stated that he was unhappy in his first marriage and as his wife would not grant him a divorce he had taken steps to obtain one unilaterally. For a time after his divorce, Hayek rarely visited his children, but kept up more regular contact with them in his older years after moving to Europe. Hayek's son,

Laurence Hayek Laurence Hayek (Larry) (15 July 1934 - 15 July 2004) was a microbiologist, and son of economist Friedrich Hayek (1899–1992). Life Born in Vienna, he was brought up in Britain where his father worked at the London School of Economics. During th ...

(1934–2004) was a distinguished microbiologist. His daughter Christine was an

entomologist Entomology () is the scientific study of insects, a branch of zoology. In the past the term "insect" was less specific, and historically the definition of entomology would also include the study of animals in other arthropod groups, such as arach ...

at the

British Museum of Natural History The Natural History Museum in London is a museum that exhibits a vast range of specimens from various segments of natural history. It is one of three major museums on Exhibition Road in South Kensington, the others being the Science Museum an ...

, and she cared for him during his last years, when he had declining health. Hayek had a lifelong interest in biology and was also concerned with ecology and environmental protection. After being awarded his Nobel Prize, he offered his name to be used for endorsements by World Wildlife Fund, National Audubon Society, and the National Trust, a British conservationist organisation. Evolutionary biology was simply one of his interests in natural sciences. Hayek also had an interest in epistemology, which he often applied to his own thinking, as a social scientist. He held that methodological differences in the social sciences and in natural sciences were key to understanding why incompetent policies are often allowed. Hayek was brought up in a non-religious setting and decided from age 15 that he was an agnostic. He died in 1992 in Freiburg, Germany, where he had lived since leaving Chicago in 1961. Despite his advanced age by the 1980s, he continued to write, even purportedly finishing a book, '' The Fatal Conceit'', in 1988, although its actual authorship is unclear.

Legacy and honours

Neustifter Friedhof - Friedrich August Hayek (cropped)

Even after his death, Hayek's intellectual presence is noticeable, especially in the universities where he had taught, namely the London School of Economics, the University of Chicago and the University of Freiburg. His influence and contributions have been noted by many. A number of tributes have resulted, many established posthumously: * The

Hayek Society Hayek, Hayki or AlHayki is a surname: * As a variant spelling of the Czech name Hájek, which originally meant "a grove", it commonly occurs in Czech place names. It occurs among Polish Jews in a Polish language spelling as ''Chajek''. * The fam ...

, a student-run group at the London School of Economics, was established in his honour. * The Oxford Hayek Society, founded in 1983, is named after Hayek. * The

Cato Institute The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane, Murray Rothbard, and Charles Koch, chairman of the board and chief executive officer of Koch Industries.Koch Indus ...

named its lower level auditorium after Hayek, who had been a Distinguished Senior Fellow at Cato during his later years. * The auditorium of the school of economics in Universidad Francisco Marroquín in Guatemala is named after him. * The Hayek Fund for Scholars of the

Institute for Humane Studies The Institute for Humane Studies (IHS) is a non-profit organization that promotes the teaching and research of classical liberalism in higher education in the United States. IHS offers funding opportunities, programs, and events for faculty and ...

provides financial awards for academic career activities of graduate students and untenured faculty members. * The Ludwig von Mises Institute holds a lecture named after Hayek every year at its Austrian Scholars Conference and invites notable academics to speak about subjects relating to Hayek's contributions to the Austrian School. * George Mason University has an economics essay award named in honour of Hayek. * The

Mercatus Center The Mercatus Center is an American libertarian, free-market-oriented non-profit think tank. Located at George Mason University and directed by the American economist Tyler Cowen, the Mercatus Center works with policy experts, lobbyists, and gove ...

, a free-market think tank also at George Mason University, who has a philosophy, politics and economics program of study named for Hayek. * The Mont Pelerin Society has a quadrennial economics essay contest named in his honour. * Hayek was awarded honorary degrees from Rikkyo University, University of Vienna and University of Salzburg. * Hayek has an investment portfolio named after him. The Hayek Fund invests in corporations who financially support free market public policy organisations * 1974:

Austrian Decoration for Science and Art The Austrian Decoration for Science and Art (german: Österreichisches Ehrenzeichen für Wissenschaft und Kunst) is a state decoration of the Republic of Austria and forms part of the Austrian national honours system. History The "Austrian D ...

* 1974: Nobel Memorial Prize in Economic Sciences (Sweden) * 1977:

Pour le Mérite for Science and Art Pour may refer to these people: * Kour Pour (born 1987), British artist of part-Iranian descent * Mehdi Niyayesh Pour (born 1992), Iranian footballer * Mojtaba Mobini Pour (born 1991), Iranian footballer * Pouya Jalili Pour (born 1976), Iranian si ...

(Germany) * 1983: Honorary Ring of Vienna * 1984: Honorary Dean of WHU – Otto Beisheim School of Management * 1984: Hanns Martin Schleyer Prize * 1984:

(United Kingdom) * 1990:

Grand Gold Medal with Star for Services to the Republic of Austria The Decoration of Honour for Services to the Republic of Austria (german: Ehrenzeichen für Verdienste um die Republik Österreich) is a state decoration of the Republic of Austria. It is divided into 15 classes and is the highest award in the A ...

* 1991: Presidential Medal of Freedom (United States) * 1994: The FA Hayek Scholarship in Economics or Political Science, University of Canterbury. The scholarship supports students toward study for an honours or master's degree in the Economics or Political Science at the university. It was established in 1994 by a gift from entrepreneur

Alan Gibbs Alan Gibbs (born 1939) is a New Zealand-born businessman, entrepreneur and art collector. After a successful business career in New Zealand, which made him one of that country's wealthiest individuals, he relocated to London in 1999. He retains ...

Notable works

* ''

'', 1944. * '' Individualism and Economic Order'', 1948. * ''

'', 1960. ''The Definitive Edition'', 2011. Description and preview. * '' Law, Legislation and Liberty'' (3 volumes) ** Volume I. ''Rules and Order'', 1973. ** Volume II. ''The Mirage of Social Justice'', 1976. ** Volume III. ''The Political Order of a Free People'', 1979. * '' The Fatal Conceit: The Errors of Socialism'', 1988. Note that the authorship of ''The Fatal Conceit'' is under scholarly dispute. The book in its published form may actually have been written entirely by its editor W. W. Bartley III and not by Hayek.

Ian Jarvie Ian Charles Jarvie (born 8 July 1937) is a philosopher trained in England, long resident in Canada. Jarvie was educated at Dover Grammar School for Boys from 1948 to 1955. He studied at the London School of Economics under Karl Popper where he gai ...

(Editor), Karl Milford (Editor), David Miller (Editor) (2006), ''

: a Centenary Assessment Vol. 1: Life and Times, and Values in a World of Facts'', pp. 120, 295,

References

Bibliography

* Birner, Jack (2001). "The mind-body problem and social evolution," CEEL Working Paper 1-02. * Birner, Jack, and Rudy van Zijp, eds. (1994). ''Hayek: Co-ordination and Evolution: His legacy in philosophy, politics, economics and the history of ideas'' * Birner, Jack (2009). "From group selection to ecological niches. Popper's rethinking of evolutionary theory in the light of Hayek's theory of culture", in S. Parusnikova & R.S. Cohen eds. (Spring 2009). "Rethinking Popper", ''Boston Studies in the Philosophy of Science''. Vol. 272 * * * Caldwell, Bruce (2005). ''Hayek's Challenge: An Intellectual Biography of F.A. Hayek'' * * Cohen, Avi J. (2003). "The Hayek/Knight Capital Controversy: the Irrelevance of Roundaboutness, or Purging Processes in Time?" ''History of Political Economy'' 35(3): 469–490. Fulltext: online in Project Muse, Swetswise and Ebsco * * Doherty, Brian (2007). ''Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement'' * Douma, Sytse and Hein Schreuder, (2013). "Economic Approaches to Organizations". 5th edition. London: Pearson, * Ebeling, Richard M. (March 2004)
"F.A. Hayek and ''The Road to Serfdom'': A Sixtieth Anniversary Appreciation"
(''The Freeman'' * Ebeling, Richard M. (March 2001)
"F.A. Hayek: A Biography"
Ludwig von Mises Institute * Ebeling, Richard M. (May 1999)
"Friedrich A. Hayek: A Centenary Appreciation"
''The Freeman'' * * * Frowen, S. ed. (1997). ''Hayek: economist and social philosopher'' * Gamble, Andrew (1996). ''The Iron Cage of Liberty'', an analysis of Hayek's ideas * Goldsworthy, J.D. (1986)

986 Year 986 ( CMLXXXVI) was a common year starting on Friday (link will display the full calendar) of the Julian calendar. Events By place Byzantine Empire * August 17 – Battle of the Gates of Trajan: Emperor Basil II leads a Byz ...

SydLawRw 3; 11(1) ''Sydney Law Review'' 44 * Gray, John (1998). ''Hayek on Liberty'' * Hacohen, Malach (2000). ''Karl Popper: The Formative Years, 1902–1945'' * * Horwitz, Steven (2005). "Friedrich Hayek, Austrian Economist". ''Journal of the History of Economic Thought'' 27(1): 71–85. Fulltext: in Swetswise, Ingenta and Ebsco * Issing, O. (1999). ''Hayek, currency competition and European monetary union'' * Jones, Daniel Stedman. (2012) ''Masters of the Universe: Hayek, Friedman, and the Birth of Neoliberal Politics'' (Princeton University Press; 424 pages) * Kasper, Sherryl (2002). ''The Revival of Laissez-Faire in American Macroeconomic Theory: A Case Study of Its Pioneers''. Chpt. 4 * Kley, Roland (1994). ''Hayek's Social and Political Thought''. Oxford Univ. Press. * Leeson, Robert, ed. ''Hayek: A Collaborative Biography, Part I: Influences, from Mises to Bartley'' (Palgrave MacMillan, 2013), 241 pages * Muller, Jerry Z. (2002). ''The Mind and the Market: Capitalism in Western Thought''. Anchor Books. * Marsh, Leslie (Ed.) (2011). ''Hayek in Mind: Hayek's Philosophical Psychology''. Advances in Austrian Economics. Emerald * O'Shea, Jerry (2020). 'Hayek's Spiritual Science', Modern Intellectual History, First View, pp. 1–26, * Pavlík, Ján (2004)
nb.vse.cz
. ''F.A. von Hayek and The Theory of Spontaneous Order.'' Professional Publishing 2004, Prague

* Plant, Raymond (2009). ''The Neo-liberal State'' Oxford University Press, 312 pages * * Rosenof, Theodore (1974). "Freedom, Planning, and Totalitarianism: The Reception of F.A. Hayek's Road to Serfdom", ''Canadian Review of American Studies'' * Samuelson, Paul A. (2009). "A Few Remembrances of Friedrich von Hayek (1899–1992)", ''Journal of Economic Behavior & Organization'', 69(1), pp. 1–4. Reprinted at J. Bradford DeLon

* Samuelson, Richard A. (1999). "Reaction to the Road to Serfdom." ''Modern Age'' 41(4): 309–317. Fulltext: in Ebsco * Schreuder, Hein (1993). "Coase, Hayek and Hierarchy", In: S. Lindenberg & Hein Schreuder, eds., Interdisciplinary Perspectives on Organization Studies, Oxford: Pergamon Press * Shearmur, Jeremy (1996). ''Hayek and after: Hayekian Liberalism as a Research Programme''. Routledge. * * Tebble, Adam James (2013). ''F A Hayek''. Bloomsbury Academic. . * Touchie, John (2005). ''Hayek and Human Rights: Foundations for a Minimalist Approach to Law''. Edward Elgar * Vanberg, V. (2001). "Hayek, Friedrich A von (1899–1992)," '' International Encyclopedia of the Social & Behavioral Sciences'', pp. 6482–6486. * * Wapshott, Nicholas (2011). ''Keynes Hayek: The Clash That Defined Modern Economics'', (W.W. Norton & Company) 382 pages ; covers the debate with Keynes in letters, articles, conversation, and by the two economists' disciples * Weimer, W., and Palermo, D., eds. (1982). ''Cognition and the Symbolic Processes''. Lawrence Erlbaum Associates. Contains Hayek's essay, "''The Sensory Order'' after 25 Years" with "Discussion" * Wolin, Richard. (2004). ''The Seduction of Unreason: The Intellectual Romance with Fascism from Nietzsche to Postmodernism.'' Princeton University Press, Princeton.{{ISBN?

Introductions

* Boudreaux, Donald J. (2014). ''The Essential Hayek''{{ISBN? * Butler, Eamonn (2012). ''Friedrich Hayek: The Ideas and Influence of the Libertarian Economist''{{ISBN? {{refend

Primary sources

* Hayek, Friedrich. ''The Collected Works of F.A. Hayek,'' ed. W.W. Bartley, III and others (University of Chicago Press, 1988–); "Plan of the Collected Works of F.A. Hayek" for 19 volumes; vol 2 excerpt and text search; vol 7 2012 excerpt.

External links

{{Wikiquote {{Commons, Friedrich von Hayek
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1974: Gunnar Myrdal, Friedrich August von Hayek
Press release regarding the award of the Nobel Prize. * {{Nobelprize with the Nobel lecture 11 December 1974 ''The Pretence of Knowledge''
Register of the Friedrich A. von Hayek Papers
at th
Hoover Institution Archives

The Hayek Interviews
Hayeks interviewed in 1978
transcript

Firing Line with William F. Buckley Jr.: Is There a Case for Private Property?
Guests: Hayek, George Roche, Jeff Greenfield
The Levin interviews – Friedrich Hayek
Bernard Levin in conversation with Hayek.
Hayek: His Life and Thought
Hayek interviewed by John O'Sullivan. Produced by Films for the Humanities in 1985. * {{Google Scholar id, ln3SfRcAAAAJ, Friedrich Hayek. * {{cite encyclopedia, title=Friedrich August Hayek (1899–1992), url=http://www.econlib.org/library/Enc/bios/Hayek.html, encyclopedia=

The Concise Encyclopedia of Economics Liberty Fund, Inc. is an American private educational foundation headquartered in Carmel, founded by Pierre F. Goodrich. Through publishing, conferences, and educational resources, the operating mandate of the Liberty Fund was set forth in an u ...

, edition=2nd, series= Library of Economics and Liberty, publisher= Liberty Fund, year=2008 * {{curlie, Science/Social_Sciences/Economics/Schools_of_Thought/Austrian_School/People/Hayek,_F._A, F.A Hayek.
''Booknotes'' interview with Alan Ebenstein on ''Friedrich Hayek: A Biography'', July 8, 2001

* ttps://newmedia.ufm.edu/video/friedrich-a-hayek-his-life-and-work/ Friedrich A. Hayek: His Life and Work Kurt Leube gives a brief biography and a list of Hayek's works. * {{NPG name
Friedrich von Hayek
(in German) from the online-archive of the Österreichische Mediathek {{Portal bar, Austria, Economics, History, Liberalism, Libertarianism, Philosophy, Politics {{Friedrich Hayek {{Nobel laureates in economics {{1974 Nobel Prize winners {{Economics {{Austrian economists {{Liberalism {{Social and political philosophy {{Authority control {{DEFAULTSORT:Hayek, Friedrich 1899 births 1992 deaths 20th-century Austrian writers 20th-century British writers 20th-century male writers 20th-century Austrian philosophers 20th-century Roman Catholics Academics of the London School of Economics Austrian academics Austrian agnostics Austrian anti-communists Austrian conservative liberals 20th-century Austrian economists Austrian emigrants to the United Kingdom Austrian expatriates in Germany Austrian expatriates in the United States Austrian libertarians Austrian male writers Austrian Nobel laureates Austro-Hungarian Nobel laureates Austrian people of Moravian-German descent Austrian philosophers Austrian Roman Catholics Austrian School economists Austro-Hungarian military personnel of World War I Bohemian nobility British anti-communists British classical liberals 20th-century British economists British expatriate academics in the United States British expatriates in Germany British libertarians British Nobel laureates British philosophers Cato Institute people Critics of Marxism Earhart Foundation Fellows English Roman Catholics Fellows of the British Academy Fellows of the Econometric Society Graduate Institute of International and Development Studies faculty Libertarian economists Libertarian theorists Nobel laureates in Economics Macroeconomists Members of the Order of the Companions of Honour Microeconomists Mises Institute people Naturalised citizens of the United Kingdom New York University faculty People associated with the London School of Economics Philosophers of law Philosophers of social science Presidential Medal of Freedom recipients Recipients of the Austrian Decoration for Science and Art Recipients of the Grand Decoration with Star for Services to the Republic of Austria Recipients of the Order of Merit of Baden-Württemberg Recipients of the Pour le Mérite (civil class) University of Chicago faculty University of Freiburg faculty University of Vienna alumni Writers from Vienna Member of the Mont Pelerin Society