The Hayekian Theory of Chronic Unemployment
DOI:
https://doi.org/10.52195/pm.v15i1.59Abstract
It is usually assumed that, while John Maynard Keynes developed a theory of chronic unemployment, Friedrich August Hayek did not. However, we defend in this paper that in «Profit, Interest and Investment» (1939) there is an implicit explanation of the high and persistent unemployment of the 1930s. The aim of this paper is to explain Hayek’s view about the economic crisis and recovery and to assess if we could talk about a Hayekian theory of chronic unemployment. We will defend that chronic unemployment has its origin in a dynamically inefficient design of some of the institutions that rule the market.
Keywords: Economic crisis, recovery, dynamic efficiency, chronic unemploy- ment, Ricardo effect.
JEL Classification: E14, E22, E24, E32, E63.
Resumen: Suele asumirse que, al contrario de John Maynard Keynes, Friedrich August Hayek no desarrolló una teoría del desempleo crónico. Sin embargo, en este artículo defendemos que en «Profit, Interest and Investment» (1939) hay una explicación implícita al alto y persistente desempleo de la década de 1930. El objetivo de este artículo es explicar la visión de Hayek sobre la crisis y la recuperación económica y evaluar si puede hablarse de una teoría del desempleo crónico. Defenderemos que el desempleo crónico tiene su origen en un diseño dinámicamente ineficiente de algunas instituciones que gobier- nan el mercado.
Palabras clave: Crisis económica, recuperación, eficiencia dinámica, desem- pleo crónico, efecto Ricardo.
Clasificación JEL: E14, E22, E24, E32, E63.
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