Hayek on Keynes’s ignorance of economics

I’d never seen this before and was apparently first published on 29 September 2012. The notes on the Youtube clip read:

Friedrich Hayek explains to Leo Rosten that while brilliant Keynes had a parochial understanding of economics.

“Parochial” is quite a word when the clip actually speaks of Keynes’s ignorance. It is well known that Keynes had a third rate understanding of economics but was a genius at polemical writing. After Marx, Keynes is the most destructive economist who has ever lived.

It is also interesting that Hayek sees understanding the history of economics as an important part in the education of an economist. Keynes’s ignorance of the economics of the past was seen as a great failing, a failing which now besets the whole of the profession. I wonder how much any modern economist would know about the monetary economists Hayek lists assuming they even know their names.

[My thanks to Harry for sending this on.]

Keynes versus Hayek once again

alex on keynes and hayek

I suppose that’s one way to look at it: Keynesian economics as a make-work project for anti-Keynesians. On the other hand, if the notion that digging holes to fill them in again doesn’t strike you as the epitome of an insane economic policy then what hope is there for any of us other than for the hole-digging and hole-filling industries, along with businesses in shovel and overalls production. But Alex does get the nature of Keynesian economics 100% right. It is just what Keynes recommended and Krugman to this day supports.

[My thanks to Robert for sending this along. How could I have missed it?]