Volume 8, No. 1 (Spring 2005)
That Hayek’s work on money, investment, and business cycle theory should be misunderstood and misrepresented poses nothing new. Its contemporaneous failure to win approval might be attributed to Hayek having “purposely refrained from combining purely theoretical considerations with discussions of current events” (Hayek 1933, p. 18). Further explanation might lie in a methodology in which theory, founded upon introspection, takes precedence over empirical work.
