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John Maynard Keynes
Keynesian Circular-Flow Analysis

The notion of a circular flow (of income and expenditures) is developed to illustrate the Keynesian vision of an inherently unstable market economy. Tracking income and expenditures graphically helps to concepualize the (perverse) market mechanisms that  take the economy from an initial state of full-employment into deep depression and back again---and then into an inflationary sprial. In Keynes's judgment, stability and prosperity require pro-active fiscal policy, i.e., discretionary spending and taxing.

Friedrich A. Hayek
Hayekian Means-Ends Analysis

In the Hayekian vision, an explicit recognition of the time element in economic activity leads to a means-ends reckoning of production and consumption. The market rate of  interest keeps production in line with people's willingness to save and allows for sustainable economic growth. Accordingly, overriding the market rate with a lower, growth-inducing rate steers the economy onto an unsustainable growth path. The unsustainability manifests itself as the boom and bust phases of the business cycle.

Keynes and Hayek
Keynes       vs.        Hayek
Comparative Macroeconomic Frameworks

The circular-flow framework and the means-ends framework are graphically juxtaposed to reveal the essential differences between Keynesian and Hayekian theorizing. For Keynes, saving (which is simply the absence of spending) dampens economic activity generally. For Hayek, saving (which can serve to finance investment) is a prerequisite to economic growth. Replacing Keynes's view of saving with Hayek's allows the whole Keynesian framework to morph into the Hayekian framework.