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Friedrich Hayek

Friedrich Hayek existed in the 21st century. He was a famous economist and philosopher in Britain and Australia. He was born in 1899 in Austria- Hungary. He is most remembered for his defence towards classical liberalism where he advocated for civil, political and economic freedom. He also emphasized on representative democracy. Hayek also advocated for free markets. He viewed the markets as being a subject of spontaneous forces. By this, he meant that the operations of the markets are unplanned and not designed by people. He viewed the market as evolving slowly as a result of the actions of the population. This famous economist died in 1992 at the age of 92 leaving behind a rich hub of knowledge for current economists.

The role of Friedrich Hayek in Economics

Friedrich Hayek was the pioneer of the theory of money and economic fluctuations. He also did an analysis of the relationship between the economy of a country, the social phenomena and the existing institutions in the country. In these, he looked at how any change in the economy had a resulting effect on the social aspects of life, for example, the level of poverty. He also explained the impact of price changes of commodities and services to individual plans. In these, he tried to illustrate how individuals, as well as households, had to change their spending patterns and budgets to match the new prices in the market. In his efforts to advocate for free markets, he explained some of the possible reasons that cause markets to fail. Among many reasons, he gave extra attention to increasing in money supply from the central bank. He explained that this brings down the interest rates that result in increased unintended investments.

Achievements of Friedrich Hayek

Through his lifetime as a scholar, Hayek won various awards for his exemplary work. In 1974, he shared with other scientists the Nobel memorial prize in economic sciences and the presidential Medal of Freedom in 1991. In 2011, his article by the name’ The use of knowledge in society’ was selected and published in the American economic review that was a great achievement even though it happened after his death. Besides, his articles are a source of knowledge for the economics graduate students of today which is also a great achievement. The insights derived from his articles are amazingly knowledgeable which made one author by the name Daniel Yergin to refer to him in his book as the ‘preeminent economist’ which means exceptionally notable excellence.