Professor Hahn, of the greatest but least known Austrian economists of his generation, offers a fantastic refutation of Keynesian macroeconomics including its wild obsession with effective demand, and also a systematic presentation of the Austrian theory of the business cycle.
It might have been common sense in his day, but it is surely not in ours. In our times (this book appeared in 1948) the truths he proves here are bracing. Prosperity comes from saving and investment. The printing press creates nothing and destroys plenty. The central has no tools that can get us out of recession and onto a sound footing. Intervention of all sorts creates more problems and solves none.
He writes with eloquence and scientific precision. He even gives us the first serious graphical comparison of the Keynesian v. Austrian views that appeared between Hayek and Garrison!
This book is a treasure, all but lost to history. This reprint brings it back in a big way and at the right time.
The book was attacked relentlessly in all the journal during the height of Keynesian hysteria. But it turns out that Hahn was right and his critics were wrong. Even to this day, it remains an outstanding discussion of the business cycle . In fact, it reads as if it appeared just last week.
May Hahn’s wisdom here once again become so known as to be common sense once again.
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Sounds like a fantastic book. Definitely going on my wish list.
I already own Economics of Illusion by the same author which is an excellent attack on Keynesianism. I am sure this is similarly effective.
It is actually better. More precise. Highly analytical. A real followup to Prices and Production (Hayek)
Not familiar with Hahn or his work, but will put it on my wish list.
Love the piggy bank.
Once again, Mises Institute genius!
(You left out the word “one” between “Hahn” and “of” in the first sentence.)
I absolutely, absolutely adore this front cover. Seriously, the LvMI continues, time after time, to amaze me with its book covers.
I have to wonder, of the books the LvMI sells specifically addressing the flaws of Keynesianism, which would you most likely suggest to a layman? Where Keynes Went Wrong by Lewis Hunter, The Failure of the “New Economics” by Hazlitt, The Critics of Keynesian Economics by Hazlitt, The Economics of Illusion by Hahn, Common Sense Economics by Hahn, The Keynesian Episode by William H. Hutt, Away From Freedom by Vernon Orval Watts, A Tiger by the Tail by Hayek, or The Hayek-Keynes Debate-Lessons for Current Business Cycle Research by John P. Cochran and Fed R. Glahe?
Perhaps a short article can be written comparing these works and their explanatory merits.
Yours truly,
Alex Peak
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