Hayek´s Accelerationism: A Rectification

Ludwig van den Hauwe

Macroeconomics from EconWPA

Abstract: The analogy between Hayekian monetary dynamics and the Friedman/Phelps accelerationist hypothesis is more problematic than some commentators have been prepared to admit. Hayek´s presentation of the 1930s did not produce a convincing argument in defense of the proposition that accelerating inflation was the inevitable logical consequence of permitting a process of forced saving to continue. On the other hand the Austrian emphasis on the unsustainability of a policy-induced boom, which is logically implied by the model, remains quite appropriate.

Keywords: inflation, accelerating inflation, monetary dynamics, business cycle theory, Hayek (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Date: 2005-08-10, Revised 2005-12-26
Note: Type of Document - pdf; pages: 6. A version of this paper was published in: Wirtschaftspolitische Blätter, 2-3/2001, pages 311-316.
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Working Paper: Hayek´s Accelerationism: A Rectification (2005)
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