- The Foundry: Conservative Policy News from The Heritage Foundation - http://blog.heritage.org -

Hayek’s Birthday

Posted By Guinevere Nell On May 8, 2009 @ 2:36 pm In First Principles | Comments Disabled

Today is Friedrich Hayek [1]’s birthday and it is an important year to celebrate his birth. Although the twentieth century was the century [2] of Hayek [3], this year seems also to be the year of Hayek. As a country, we are belatedly remembering his warnings, and seeing the consequences of ignoring them for so long.

Hayek explained many years ago the problems with centralized monetary policy, over-regulation and interference with prices. He understood the danger of subsidizing risk [4] and loss and feeding a boom with easy money.

He also understood that markets are a process, and the process is one of learning and discovery—for this reason, financial models that are uniformly imposed and expect perfect information are doomed to fail. [5]

To celebrate, we suggest buying a copy of the Road to Serfdom [6], if you do not have one, and perhaps in the evening, drink a toast of burgundy wine [7] in his name.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/05/08/hayek%e2%80%99s-birthday/

URLs in this post:

[1] Friedrich Hayek: http://en.wikipedia.org/wiki/Friedrich_Hayek

[2] century: http://www.hoover.org/publications/digest/3492456.html

[3] of Hayek: http://www.dallasfed.org/research/ei/ei9901.html

[4] subsidizing risk: http://www.foundry.org/2009/05/07/whos-behind-the-financial-meltdown/

[5] financial models that are uniformly imposed and expect perfect information are doomed to fail.: http://blogs.telegraph.co.uk/philip_booth/blog/2009/01/21/financial_crisis_shows_why_we_should_admire_freidrich_hayek

[6] Road to Serfdom: http://www.amazon.com/Road-Serfdom-Documents-Definitive-Collected/dp/0226320553/ref=sr_1_1?ie=UTF8&s=books&qid=1241790033&sr=8-1

[7] toast of burgundy wine: http://hayekcenter.org/?p=1025

Copyright © 2011 The Heritage Foundation. All rights reserved.