Journal Articles
Abstract:
Friedrich A. Hayek taught at the University of Chicago from the fall semester of 1950 through 1962, a period during which the second, or new, Chicago School of Economics was formed. The question naturally arises: What was his role in its formation? A quick look at the historical record, and common sense itself, suggests that it must have been close to nil. Milton Friedman, whom many would consider the central figure in the School, was hired in 1946, before Hayek had arrived. Hayek tried to get a job in the economics department in 1948, but they declined to make him an offer. He ended up instead on the Committee on Social Thought. During his time at Chicago (1950–1962) Hayek worked principally on political philosophy rather than economics, with The Constitution of Liberty (1960) being the end result. And Hayek famously disagreed with the leader of the Chicago School, Milton Friedman, on monetary theory and methodology, two of the defining aspects of Friedman’s legacy.