Month: December 2010

The economic imbalances within Europe have become too great, particularly regarding productivity differences. In order to correct them, it would be desirable for some countries to be able to devalue their own currencies. Instead of trying to keep such nations within the monetary corset of the euro at all costs, the EU should allow them to depart. None of these sensible options were even on the table at the Brussels summit.

By comparing the different economic conditions of Europe and Australia, it should not be too difficult for Australians to make a choice about economic policy. Mimicking European policies is the surest way to economic disaster.

Christmas is when two great religions collide: Christianity and environmentalism. It’s God v Gaia, Christmas trees v tree huggers, and peace on earth v Greenpeace. Christians do not see nature as an end in itself. As Genesis puts it: “Be fruitful and increase in number; fill the earth and subdue it. Rule over the fish of the sea and the birds of the air and over every living creature that moves on the ground.”

By comparing the different economic conditions of Europe and Australia, it should not be too difficult for Australians to make a choice about economic policy. Mimicking European policies is the surest way to economic disaster.

To superficial observers, this week’s European summit in Brussels will look like any other high-level conference. Prime ministers, chancellors and presidents will rub shoulders, pose for photographers, and dally with waiting journalists. Once again it will all seem a bit like a school reunion. But the pretty pictures of smiling politicians cannot conceal that the continent is in crisis and the European Union is falling apart.

On a philosophical level, Europe’s crisis can be interpreted as a practical lesson in the errors of constructivism. It shows what happens if grown economic and social structures are wilfully ignored and replaced by systems designed in academic ivory towers and the backrooms of power.

Europe is a continent in crisis. The financial problems of many European economies became visible to the rest of world when Greece only narrowly escaped bankruptcy in May 2010. Ever since, more unpleasant data about the state of public finances in Europe have emerged, putting pressure on Europe’s common currency, the euro. With the focus on finances, it is easy to overlook that many of Europe’s current problems are not purely economic. They are the result of some basic construction errors of the European project.

Friedrich August von Hayek was one of the intellectual giants of the 20th century. His contributions ranged from economics to philosophy, from law to psychology. In 1972, he won the Nobel Prize in Economics, and his ideas had great influence on politicians like Ronald Reagan and Margaret Thatcher.

At an event hosted by The Centre for Independent Studies in 2008, four academics delivered an assessment of Hayek’s contributions to different fields of research and analysed their relevance to contemporary debates. This collection of essays demonstrates how much a source of inspiration Hayek’s works still are.