The meaning of Hayek’s main views on monetary theory

Source: Notes On Liberty
by Federico Sosa Valle

“The one who is set to determine what Friedrich Hayek’s monetary theory consisted of will discover that his was a labyrinthic exploration conducted to dead-ends, which taught him what paths not to follow. In his first years of research, Hayek was focused on the business cycle theory and on the monetary effects on the business cycles, his main objective being the pursuit of a neutral currency. … Hayek’s initial concern on monetary theory was not focused on the stability of the price level but rather on the attainment of the neutrality of money.” (05/07/22)