Friedrich Hayek's Altitude to Keynes’ Theory and Policy of Full Employment

Friedrich Hayek rejects explicitly both Keynes' theory and the policy of full employment based on this theory. He bases his thesis about fundamental fallacy of Keynes' theory on methodological premises. F. Hayek criticizes Keynes’ theory as a theory applying methods of natural sciences, a macroeconomic theory and a theory paving the way for dominance of quantitative economics. Moreover, at the foundations of this criticism lie certain methodological-philosophical assumptions leading to apotheosis of competition and negation of possibilities of steering socio-economic processes by man in a deliberate way. In this point, Hayek's criticism of Keynesism coincides with his criticism of the idea of planning and of socialism. The policy of full employment is interpreted by the author as a policy cerating a necessity of accelerated inflation. His criticism of this policy springs from his full acceptance of the neoclassical theory of employment