Keynes - Hayek Debate

The following videos are unusually intellectually rich for satirical music videos. You will be able to see course material as well as contemporary policy debates (c. 2010/11) represented in them. Note that there are more to be found at econstories.tv, although the site is explicitly an anti-Keynesian, pro-Hayekian site.  

Overall, the music videos are mostly accurate in their representations of the Keynesian and Hayekian macro theories, although they are not balanced. They present more time to the Hayekian view, which also always gets the last word, and often blame the Keynesian view for things that Keynes was actually a critic of, for example, the overuse of non-empirical (unrealistic) mathematical models, and strategic (anti-competitive) behavior in imperfect markets. They were created by followers of the Austrian free market perspective, after all.

Besides including a lot of analytical references, note that the videos also accurately capture the "theory envy" that the Hayekians have toward the Keynesians, as Hayek and Lawrence both lament that the Keynesian theory is inexplicably more popular and dominant. Note also that Keynes is represented as a rich, gambling, partying, reckless, irresponsible, celebrity. While that is both funny, and some would argue accurate about Keynes' personal life, it is not fair to portray his theory or the policy it espouses that way. Indeed, Keynes made clear the distinction between wasteful spending (both by government and private investors, i.e. speculation) and productive spending on infrastructure, new technology, and new industries.

HAVE FUN!!!

Fear the Boom and the Bust
Music Video

Part I: Keynesianism
Mini-doc

Part II: Hayek - The Bust
Mini-doc

Part III: The Cluster of Errors
Mini-doc