The price conveys embedded information about the abundance of resources as well as their desirability which in turn allows, on the basis of individual consensual decisions, corrections that prevent shortages and surpluses ; Mises and Hayek argued that this is the only possible solution, and without the information provided by market prices socialism lacks a method to rationally allocate resources.

Paul Cockshott and Allin Cottrell in Towards a New Socialism, Information and Economics: A Critique of Hayek, and Against Mises have argued that the use of computational technology now simplifies economic calculation and allows central planning to be implemented and sustained.

Friedrich Hayek in his The Use of Knowledge in Society argued that " knowledge of the particular circumstances of time and place " is not easily aggregated and is often ignored by professional economists.

In 1932, Hayek suggested that private investment in the public markets was a better road to wealth and economic coordination in Britain than government spending programs, as argued in a letter he co-signed with Lionel Robbins and others in an exchange of letters with John Maynard Keynes in The Times.

In his Prices and Production ( 1931 ), Hayek argued that the business cycle resulted from the central bank's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates.

In accordance with the reasoning later outlined in his essay The Use of Knowledge in Society ( 1945 ), Hayek argued that a monopolistic governmental agency like a central bank can neither possess the relevant information which should govern supply of money, nor have the ability to use it correctly.

Hayek argued that all forms of collectivism ( even those theoretically based on voluntary cooperation ) could only be maintained by a central authority of some kind.

In his popular book, The Road to Serfdom ( 1944 ) and in subsequent academic works, Hayek argued that socialism required central economic planning and that such planning in turn leads towards totalitarianism.

Building on the earlier work of Ludwig von Mises and others, Hayek also argued that while in centrally planned economies an individual or a select group of individuals must determine the distribution of resources, these planners will never have enough information to carry out this allocation reliably.

In The Use of Knowledge in Society ( 1945 ), Hayek argued that the price mechanism serves to share and synchronize local and personal knowledge, allowing society's members to achieve diverse, complicated ends through a principle of spontaneous self-organization.

* Friedrich Hayek: He argued that central planning was inefficient because members of central bodies could not know enough to match the preferences of consumers and workers with existing conditions.

Hayek further argued that central economic planning-a mainstay of socialism-would lead to a " total " state with dangerous power.

Hayek ( 1935 ) argued against the proposal to simulate markets with equations.

Critics of the British mixed economy, including Ludwig von Mises and Friedrich von Hayek, argued that what is called a mixed economy is a move toward socialism and increasing the influence of the state.

Hayek argued that increased economic freedom had put pressure on the dictatorship over time and increased political freedom.

In The Road to Serfdom, Hayek argued that " Economic control is not merely control of a sector of human life which can be separated from the rest ; it is the control of the means for all our ends.

Due to the ignorance of the individual, Hayek argued that an individual could not understand which of the various political, economic and social rules they had followed had made them successful.

Hayek did not believe that a complete lack of coercion was possible, or even desirable, for a liberal society, and he argued that a set of traditions was absolutely necessary which allowed individuals to judge whether they would or would not be coerced.

In The Road to Serfdom, Hayek argued that " Economic control is not merely control of a sector of human life which can be separated from the rest ; it is the control of the means for all our ends.

Austrian School economists Ludwig Von Mises and Friedrich August Hayek argued that private property rights are a requisite for rational economic calculation and that the prices of goods and services cannot be determined accurately enough to make efficient economic calculation without clearly defined private-property rights.

Economist F. A. Hayek has argued that the second generation concept of " social justice " cannot have any practical political meaning:

Friedrich Hayek argued that the certainty of law contributed to the prosperity of the West more than any other single factor.

In The Road to Serfdom, Hayek argued that " Economic control is not merely control of a sector of human life which can be separated from the rest ; it is the control of the means for all our ends.

Friedrich Hayek, another Austrian theorist, argued that Keynes ' study of the aggregate relations in an economy is fallacious, as recessions are caused by micro-economic factors.

Overall, the Democratic Party advocates economic policies pretty close to " liberalism " in the sense of John Rawls ( rather than, say, of Robert Nozick or Friedrich Hayek, as commonly accepted outside North America ), in sharp contrast with the traditional radical free-market orientation of Hong Kong.

It was only in the 20th century that the relative sophistication found in Smith ’ s work would be reformulated by economists such as Friedrich Hayek, Joseph Schumpeter, and Milton Friedman ( of the Chicago School of economics of the 1960s and 1970s ), resulting in a recipe for a free-market economy:

F. A. Hayek wrote that Hobhouse's book would have been more accurately titled Socialism, and Hobhouse himself called his beliefs " liberal socialism ".

Friedrich von Hayek responded that the system of equations required too much information that would not be easily available and the ensuing calculations would be too difficult.

Hayek responded by arguing that the simulation of markets in socialism would fail due to a lack of genuine competition and entrepreneurship.

Through analysis of this and other of Hayek's works, Block purports, " in making the case against socialism, Hayek was led into making all sort of compromises with what otherwise appeared to be his own philosophical perspective – so much so, that if a system was erected on the basis of them, it would not differ too sharply from what this author explicitly opposed.

On 9 October 1974, it was announced that Hayek would be awarded the Nobel Memorial Prize in Economics, along with Swedish socialist economist Gunnar Myrdal.

Although he spoke with apprehension at his award speech about the danger which the authority of the prize would lend to an economist, the prize brought much greater public awareness of Hayek and has been described by his biographer as " the great rejuvenating event in his life ".

Hayek posited that a central planning authority would have to be endowed with powers that would impact and ultimately control social life, because the knowledge required for centrally planning an economy is inherently decentralized, and would need to be brought under control.

Hayek felt that application of Keynes's policies would give too much power to the state and would lead to socialism.

Erhard wrote, “ I would like to frankly acknowledge that my own contribution to this effort social market economy -- R. P. would not have been possible without Walter Eucken, Franz Bohm, Wilhem Ropke, Alexander Rustow, F. A. von Hayek, Alfred Muller-Armack, and many others who joined me in thinking and debating ”.

This problem of information flow implied that a decentralised system, in which information travelled freely and was freely determined at each localised point ( Hayek called this catallaxy ), would be much better than a central authority trying to do the same, even if it was completely efficient and was motivated to act in the public good.

Friedrich Hayek would argue that this is knowledge which could not be provided as a " given " by any " method " yet discovered, due to insuperable cognitive limits.

Hayek derived the word " Catallaxy " ( Hayek's suggested Greek construction would be rendered καταλλαξία ) from the Greek verb katallasso ( καταλλάσσω ) which meant not only " to exchange " but also " to admit in the community " and " to change from enemy into friend.

People would say that she was much influenced by Karl Popper or Frederick Hayek.

Although Hayek believed that government intervention in markets would lead to a loss of freedom, he recognized a limited role for government to perform tasks of which free markets were not capable:

In his review ( collected in The Present as History, 1953 ) Marxist Paul Sweezy joked that Hayek would have you believe that if there was an over-production of baby carriages, the central planners would then order the population to have more babies instead of simply warehousing the temporary excess of carriages and decreasing production for next year.