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Unformatted text preview: I N TB 3351 H istory of Globalization Video Study Guide The Commanding Heights Episode 1, Chapters 1-5 (PBS online) http://www.pbs.org/wgbh/commandingheights/lo/story/ch_menu.html The Prize: The Black Giant The Prize: War and Oil 1. How did Keynes and Hayek differ in their interpretations of the global economic collapse and the solutions they offered to it? Whose views prevailed? Friedrich von Hayek- known throughout the world for his defense of classical liberalism and free-market capitalism against sot and collectivist thought. He is considered to be one of the most important economists and political philosophers of the twentieth century. Hayek criticized som, often contrasting it with a system of free markets. In his works he opposed the theories of John Maynard Keynes and argued that government intervention in the free market is destructive of individual values and could not prevent such economic ailments as inflation, unemployment, and recession. John Maynard Keynes- known for his idea that government should intervene in times of market distress. Keynes argued that in mild economic downturns, monetary policy in the form of easier credit and lower interest rates might stimulate investment. More severe crises called for deliberate public deficits either in the shape of public works or subsidies to the poor and unemployed. Keynes's theories were put into practice by many Western democracies, notably by the U.S. in the New Deal. In Keynesian theory, many Western democracies, notably by the U....
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- Spring '08