The new-classicals and Hayek’s Cycle Theory

Vol. 18 No. 3 (1998)

Jul-Sep / 1998
Published July 1, 1998
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Soromenho, Jorge Eduardo de Castro. 1998. “The New-Classicals and Hayek’s Cycle Theory”. Brazilian Journal of Political Economy 18 (3):405-23.

The new-classicals and Hayek’s Cycle Theory

Jorge Eduardo de Castro Soromenho
Professor da Faculdade de Economia e Administração da Universidade de São Paulo – FEA-USP, São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 18 No. 3 (1998), Jul-Sep / 1998, Pages 405-423


It has been recently discussed the similitude between new-classical business cycle
theory and Hayek’s works on economic fluctuations. In this article, we aim at rejecting
the thesis of similitude. Firstly, we present the new-classical theory with emphasis both on
Lucas’s works and on microeconomics foundations. After that, we discuss the difficulty to
characterize Hayek’s thought and we present a reconstruction of this project on the theory
of cycles. We intend to demonstrate that Hayek and new-classical theories have different
conceptions on the modus operandi of capitalistic economies.

JEL Classification: B25; B22; B31.

Keywords: Business cycle theory Austrian School new classical Hayek Lucas