Keynes Versus Hayek: on the Appropriateness of Government Intervention in Markets

Year 2018, Volume: 10 Issue: 18, 166 - 176, 01.01.2018

Mehmet Levent Yılmaz , Hüseyin Atakan Keskin

https://doi.org/10.14784/marufacd.460686

An Erratum to this article was published on October 3, 2023. https://dergipark.org.tr/en/pub/marufacd/issue/76150/1370025

Abstract

In keeping with the pattern of the last century, today we observe staunch and oftentimes vociferous opposition
to even the prospect of state intervention in the market place to either curtail recessionary downturns
or mitigate the corollaries of market failure. To whom or to what is this knee-jerk revulsion to government
interference attributable? Is it justified? And what is the role of government in the contemporary
economy? Figures that have dominated this hemisphere of thought include free-market advocates such as
Friedrich von Hayek. On the other end of the spectrum, personalities like John Maynard Keynes challenged
fundamentally the idea that market economies will automatically adjust to create full employment, in the
process setting the parameters of a debate that rages on into the contemporary era.

Keywords

John Maynard Keynes, Friedrich Von Hayek, State Intervention In The Market Place, Free-Market, Keynesian Theory

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