The new-classicals and Hayek’s Cycle Theory

Abstract

It has been recently discussed the similitude between new-classical business cycle
theory and Hayek’s works on economic fluctuations. In this article, we aim at rejecting
the thesis of similitude. Firstly, we present the new-classical theory with emphasis both on
Lucas’s works and on microeconomics foundations. After that, we discuss the difficulty to
characterize Hayek’s thought and we present a reconstruction of this project on the theory
of cycles. We intend to demonstrate that Hayek and new-classical theories have different
conceptions on the modus operandi of capitalistic economies.

JEL Classification: B25; B22; B31.