Hayek's currency theory and economic cycle theory inherits the neutral currency doctrine of the Nordic school Wicksier and the credit cycle of the Vienna school Misceis. His currency theory is the theory of the impact of currency on different exchange ratios between various commodities. Hayek believes that the general value of currency is not important. Unlike other goods, currency has no objective value. His currency theory is to show when when the currency affects the relative price of the product, and when it will not affect the relative price of the product, that is, maintaining "neutral" or "neutral", and the currency to maintain neutrality. Hayek believes that the "capital production system" has an important feature, which is to adopt "capitalized production methods", that is, the "roundabout production" method of the Austrian school. It means that most of the original production materials are not used to meet the current needs, but to produce a long -term production method of consumer goods. If the production process is longer, it is "more capitalized production method", that is, a more circuitous production method. In this way, new production stages will appear, which will continue to expand the vertical structure of production and continuously extend the production process. This method means that there are more and more production stages, production is becoming more and more indirect, and more and more deductible. The proportion of intermediate items to consumer goods to consumer goods is proportional to the length of the production process of consumer goods. The change from the length of one round of production process to another is the change of the "production structure". This change has a significant relationship with the theory of monetary economic cycle. On the one hand, it depends on the price of products at each production stage, on the other hand, it depends on the original production and the cost of the intermediate product from the previous production stage. Therefore, the price is the most realistic and important factor that determines the direction of production. The key to whether the production structure will occur, the key depends on the ratio of the total amount of producer items expressed by currency is the same as the total amount of consumer items. If this proportion increases, the production structure will be extended; on the contrary, when this proportion is reduced, the production structure will be shortened. The reason is the result of changes in the number of savings, or the result of changes in the number of currencies. When the change of the production structure is due to changes in the number of savings, the economic system will automatically establish a new balance. When the changes in the production structure are due to the number of currencies, it will cause imbalances in the economic system and the economic crisis. The ideal state is that if the production structure should fully adapt to the proportion of demand for consumer goods and producer items, the demand ratio determined by voluntary savings and voluntary consumption. In order to avoid the outbreak of the economic crisis, the currency must be neutral, that is, the currency must not affect the formation of price formation and production roundabout. To this end, three conditions must be available: first, the total currency flow is fixed; second, all prices are completely expanded; third, all long -term contracts are based on accurate prediction of future price changes.
Hayek's currency theory and economic cycle theory inherits the neutral currency doctrine of the Nordic school Wicksier and the credit cycle of the Vienna school Misceis. His currency theory is the theory of the impact of currency on different exchange ratios between various commodities. Hayek believes that the general value of currency is not important. Unlike other goods, currency has no objective value. His currency theory is to show when when the currency affects the relative price of the product, and when it will not affect the relative price of the product, that is, maintaining "neutral" or "neutral", and the currency to maintain neutrality. Hayek believes that the "capital production system" has an important feature, which is to adopt "capitalized production methods", that is, the "roundabout production" method of the Austrian school. It means that most of the original production materials are not used to meet the current needs, but to produce a long -term production method of consumer goods. If the production process is longer, it is "more capitalized production method", that is, a more circuitous production method. In this way, new production stages will appear, which will continue to expand the vertical structure of production and continuously extend the production process. This method means that there are more and more production stages, production is becoming more and more indirect, and more and more deductible. The proportion of intermediate items to consumer goods to consumer goods is proportional to the length of the production process of consumer goods. The change from the length of one round of production process to another is the change of the "production structure". This change has a significant relationship with the theory of monetary economic cycle. On the one hand, it depends on the price of products at each production stage, on the other hand, it depends on the original production and the cost of the intermediate product from the previous production stage. Therefore, the price is the most realistic and important factor that determines the direction of production. The key to whether the production structure will occur, the key depends on the ratio of the total amount of producer items expressed by currency is the same as the total amount of consumer items. If this proportion increases, the production structure will be extended; on the contrary, when this proportion is reduced, the production structure will be shortened. The reason is the result of changes in the number of savings, or the result of changes in the number of currencies. When the change of the production structure is due to changes in the number of savings, the economic system will automatically establish a new balance. When the changes in the production structure are due to the number of currencies, it will cause imbalances in the economic system and the economic crisis. The ideal state is that if the production structure should fully adapt to the proportion of demand for consumer goods and producer items, the demand ratio determined by voluntary savings and voluntary consumption. In order to avoid the outbreak of the economic crisis, the currency must be neutral, that is, the currency must not affect the formation of price formation and production roundabout. To this end, three conditions must be available: first, the total currency flow is fixed; second, all prices are completely expanded; third, all long -term contracts are based on accurate prediction of future price changes.