Hayek versus Keynes debate

The Hayek versus Keynes debate centers on how economies recover from downturns. Keynes believed that during a recession, governments should increase spending and cut taxes to boost demand and stimulate growth. Hayek argued that excessive government intervention distorts the economy, and that markets naturally adjust over time without interference. Essentially, Keynes favored active policy support during crises, while Hayek emphasized allowing free markets to correct themselves. Their differing views influence economic policies and debates about government’s role in managing the economy.