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The Review of Austrian Economics

, Volume 16, Issue 4, pp 291–307 | Cite as

Knowledge Questions: Hayek, Keynes and Beyond

  • William N. Butos
Article

Abstract

This paper discusses the “knowledge problem” in terms of both the use and generation of knowledge. This is analyzed in the context of Hayek's failure to respond to the “Keynes Challenge”—the claim that markets fail to produce relevant knowledge—by suggesting that in the aftermath of The General Theory he was not well-positioned to address that problem. Ironically, his post-World War II work in cognitive psychology, The Sensory Order, offers a theory of the generation of knowledge which can provide a useful analogy for understanding the generation of market-level knowledge.

Hayek Keynes knowledge 

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Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • William N. Butos
    • 1
  1. 1.Trinity CollegeHartfordUSA

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