The 'New Economy' in the 1920s and the 1990s

In The Constitution of Liberty (1960) and other works, Friedrich Hayek explained the dynamics of economic change under capitalism. Unlike many of his contemporaries, Hayek saw the dynamics of change as far more important for economic welfare and for the survival of capitalism as a social and economic system than the proofs of static efficiency that attract mathematical economists. For Hayek, as for Schumpeter, the distinguishing feature of capitalism lies in the interrelation of freedom and progress.