Hayek, through his book the ‘Road to Serfdom’ became one of the founding fathers of the market economic system that we have adopted as the principal method of organising economic activity. However, like all neo-liberal economists, his views and recommendations have come under increasing scrutiny in the current financial crisis.
Faith. Belief. Trust. This economic orthodoxy was built on superstition Guardian (6/10/08)
Dangers of worshipping false god of self-regulating markets Irishtimes.com (3/10/08)
Questions
| 1. | Write a short paragraph setting out the key arguments in Hayek’s book ‘The Road to Serfdom’. |
| 2. | Assess the importance of confidence in an economic system. To what extent is a lack of confidence a ‘self-fulfilling prophecy’? |
| 3. | Discuss the extent to which Hayek’s work influenced the adoption of neo-liberal economic policies. |