Frederick Hayek speaks — provided by RealEconTV.com; What if the fundamental theory that guides government
action on the economy were fatally flawed? Frederich Hayek recounts his last conversation with
John Maynard Keynes. Hayek asked Keynes whether he wasn’t alarmed that the real problem was inflation. Keynes completely agreed, assuring Hayek that Hayek’s theory was “frightfully important in combatting deflation.” Keynes added that “if inflation ever becomes a danger, I’m going to turn public opinion around like this.” Six weeks later Keynes was dead and couldn’t do it.