Keynes and Hayek: The Meaning of Knowing: The Roots of the Debate

In the 1930s John Maynard Keynes and Friedrich Hayek set economics on a new course by asking “how do rational people deal with the problem of economic scarcity when they are ignorant about both the options available to them and the consequences of their actions?” Their ensuing debate profoundly altered our view of ourselves as decision makers and our predictions about the trajectory of economies and societies. The separate views of Keynes and Hayek about what it means to know laid the foundation for their clash over economic theories. The untold story is how these views of knowledge emerged and influenced the examination of economic principles.