The free banking movement got its modern start with The Denationalization of Money, by Friedrich Hayek, who advocated that national governments stop claiming a monopoly on the issuing of currency, and allow private issuers like banks to voluntarily compete to do so.

Hayek was disappointed that the book did not receive the same enthusiastic general reception as The Road to Serfdom had sixteen years before.

Eager to promote alternatives to what he regarded as the narrow approach of the school of economic thought that then dominated the English-speaking academic world ( centered at the University of Cambridge and deriving largely from the work of Alfred Marshall ), Robbins invited Hayek to join the faculty at LSE, which he did in 1931.

At the University of Chicago, Hayek was not part of the economics department and did not influence the rebirth of neoclassical theory which took place there ( see Chicago school of economics ).

Hayek did not like the expression “ social market economy ”, but he noticed in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase.

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.

Hayek himself praised the work, as did fellow Nobel Prize laureate Milton Friedman, who said that Hazlitt's description of the price system, for example, was " a true classic: timeless, correct, painlessly instructive.

Hayek was concerned about the general view in Britain's academia that fascism was a capitalist reaction to socialism and The Road to Serfdom arose from those concerns.

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.

With regard to a safety net, Hayek advocated " some provision for those threatened by the extremes of indigence or starvation, be it only in the interest of those who require protection against acts of desperation on the part of the needy.

Hayek continued his research on monetary and capital theory, revising his theories of the relations between credit cycles and capital structure in Profits, Interest and Investment ( 1939 ) and The Pure Theory of Capital ( 1941 ), but his reputation as an economic theorist had by then fallen so much that those works were largely ignored, except for scathing critiques by Nicholas Kaldor.

While neoclassical theory uses the conditions of perfect markets to describe the conditions under which it will work, neoliberal theory rejects those in favour of ideas based largely on the work of Friedrich von Hayek and Milton Friedman and broadly argues that perfect markets occur naturally provided that economic and political freedoms are present and maintained.

Donald Devine has argued Meyer's synthesis is a first principle or axiom that is as valid as Strauss ’ monist first principle and relates this to Hayek ’ s critical rationalism philosophical tradition and those he identifies with it such as Aristotle, Cicero, Thomas Aquinas, Montesquieu, John Locke, Adam Smith and Lord Acton.

In 1976, in a paper on The Denationalization of Money, Hayek advocated that rather than re-instituting a government-mandated gold standard, a free market in money be allowed to develop, with issuers of money competing with each other to produce the best, most stable and healthy currency.

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.

Among Lai's heroes are Friedrich Hayek, John James Cowperthwaite and Milton Friedman, bronze busts of each stand in the entrance hall to Next Media.

However, in 1976, in a paper on The Denationalization of Money, Hayek advocated that rather than re-instituting a government-mandated gold standard, a free market in money be allowed to develop, with issuers of money competing with each other to produce the best, most stable and healthy currency.

Writing for the Naples Daily News, Steve Schmadeke, notes, " it's also true that his system of governance, in which authority is given to the expert in each field — in this case, specially programmed computers — is one that many writers, including Nobel-prize-winner Friedrich Hayek, have shown to be disastrous.

Friedrich Hayek identified two different traditions within classical liberalism: the " British tradition " and the " French tradition ".

Hayek saw the British philosophers Bernard Mandeville, David Hume, Adam Smith, Adam Ferguson, Josiah Tucker, Edmund Burke and William Paley as representative of a tradition that articulated beliefs in empiricism, the common law, and in traditions and institutions which had spontaneously evolved but were imperfectly understood.

Hayek also rejected the label " laissez faire " as originating from the French tradition and alien to the beliefs of Hume, Smith and Burke.

The University of Freiburg has been home to some of the greatest minds of the Western tradition, including such eminent figures as Martin Heidegger, Hannah Arendt, Rudolf Carnap, David Daube, Johann Eck, Hans-Georg Gadamer, Friedrich Hayek, Edmund Husserl, Friedrich Meinecke, and Max Weber.

Rather, they were more in the tradition of the work of Friedrich von Hayek, who opposed government regulation, tariffs, and other infringements on a pure free market, and Milton Friedman, who emphasized the futility of using inflationary monetary policies to influence rates of economic growth.

Libertarian intellectuals in the tradition of Friedrich Hayek and the Austrian School of Economics advocate laissez-faire regarding economic and social issues.

To Hayek, like Meyer, freedom and tradition were fused.

Economic liberalism, insofar as it is ideological, owes its creation to the " classical liberal " tradition, in the vein of Adam Smith, Friedrich A. Hayek, Milton Friedman, and Ludwig von Mises.

Mises and Hayek saw centralization as inevitable in socialism.

By 1947, Hayek was an organizer of the Mont Pelerin Society, a group of classical liberals who sought to oppose what they saw as socialism in various areas.

Hayek saw not only equality of opportunity but all of social justice as a " mirage ".

The Road to Serfdom was to be the popular edition of the second volume of Hayek ’ s treatise entitled “ The Abuse and Decline of Reason ,” and the title was inspired by the writings of the 19th century French classical liberal thinker Alexis de Tocqueville on the “ road to servitude .” The book was first published in Britain by Routledge in March 1944, during World War II, and was quite popular, leading Hayek to call it “ that unobtainable book ,” also due in part to wartime paper rationing.

He frequently refers to such figures as Frédéric Bastiat, Alexis de Tocqueville, Friedrich Hayek or Milton Friedman.

Friedrich August Hayek CH (; 8 May 189923 March 1992 ), born in Austria-Hungary as Friedrich August von Hayek, was a British economist and philosopher best known for his defense of classical liberalism.

Hayek lived in Austria, Great Britain, the United States and Germany, and became a British subject in 1938.

Unwilling to return to Austria after the Anschluss brought it under the control of Nazi Germany in 1938, Hayek remained in Britain and became a British subject in 1938.

In 1977, Hayek was critical of the Lib-Lab pact, in which the British Liberal Party agreed to keep the British Labour government in office.

Hayek was defended by Professor Antony Flew who stated that the German Social Democrats, unlike the British Labour Party, had, since the late 1950s, abandoned public ownership of the means of production, distribution and exchange and had instead embraced the social market economy.

In Why F A Hayek is a Conservative, British policy analyst Madsen Pirie believes Hayek mistakes the nature of the conservative outlook.

Gunnar Myrdal received the Nobel Memorial Prize in Economic Sciences in 1974 ( shared with his ideological nemesis, Austrian economist Friedrich Hayek ); Bertil Ohlin received the Nobel Prize in Economics in 1977 ( shared with British economist James Meade ).

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.

In his " Opening Address to a Conference at Mont Pelerin " Hayek mentioned " two men with whom I had most fully discussed the plan for this meeting both have not lived to see its realisation ": Henry Simons ( who trained Milton Friedman, a future president of the society, at the University of Chicago ) and Sir John Clapham, a senior official of the Bank of England who from 1940 – 6 was the president of the British Royal Society.

Significantly, Hayek challenged the general view among British academics that fascism was a capitalist reaction against socialism, instead arguing that fascism and socialism had common roots in central economic planning and the power of the state over the individual.

Hayek analyzes the roots of Nazism in socialism, then draws parallels to the thought of British leaders:

Winston Churchill was influenced by the work of Hayek and opposed heavy government interference in the British economy.

Lord Bauer was also a fellow of the British Academy and a member of the Mont Pelerin Society, which was founded by his friend Friedrich Hayek.