The Hayek vs. Keynes debate

The Hayek vs. Keynes debate centers on how to best manage the economy. Keynes believed that during downturns, government should boost spending to stimulate demand and create jobs, helping recover growth. Hayek argued that markets are best left to adjust naturally, believing government intervention can cause more harm, like inflation or misallocation of resources. Essentially, Keynes emphasizes active management to prevent recessions, while Hayek advocates for free markets and minimal interference to maintain long-term stability. Their debate shapes economic policies and views on regulating and stabilizing national economies.