Hayek: The Road To Serfdom

what guaranteed individual liberty for Hayek?

markets

what starts society down the path to the road to serfdom?

government intervention in markets

what is Hayek’s view on the government increasing the money supply and lowering interest rates during a recession?

he believes this is a mistake as firms will produce goods that are not necessarily desired by consumers which would cause firms to go bankrupt and there would be capital invested where it shouldn’t be

what was crucial to solving the problems of the great depression?

having the government stay out of meddling with the money supply

Hayek’s concern was with issues of _________ whereas Keynes’s concern was with issues of _________

supply, demand

what is Hayek’s view on state planning in terms of its effects on markets?

it interferes with the natural operation of markets

Hayek believed that there is no way someone can know everything about the economy, therefore

planning does not make sense

to Hayek, market transactions were like

a collective agreement about the value/price of a good