Masters of Money

In the documentary, Masters of Money, by Stephanie Flanders, the concept of regulated capitalism undergoes a considerable discourse. Accordingly, the predicament associated with this economic thought has influenced people considerably. Nowadays, individuals are questioning the existing economic system in order to devise novel forms of evading the economic crisis. This involves deviating from the ideals of John-Maynard Keynes and adapting the contributions of Friedrich Von Hayek. In response, it is agreeable that regulation of the market comprises the major factor behind the progression of the economic crisis in the United States and the global economy. Accordingly, advocates of the free market argue that the regulation by the American government, especially in the setting of interest rates, led to the economic crisis in America (Flanders & Quinn, 2012). Based on the American crisis as well as the predicament faced in the USSR due to the fixation of prices by the government, it is probable that market regulation imposes negative effects on the overall economy.

In addition to this, the historical thought of Keynes, regardless of their different periods, express considerable similarity to Hayek’s monetarist thought. For Hayek, the capitalist economy is undialectical, unpredictable, impractical and hectic. This is the same view that Keynes agreed on based on his understanding of the economy and society. Regardless of these ideals, Keynes’ responsible capitalism became extremely adaptable within the American economic system. By the introduction of guidelines such as the monetary policy by the Federal Reserve, the economic system continues to face regulation regardless of the predicaments it experienced during the 1920s (Flanders & Quinn, 2012). Even though Hayek’s view illustrates the binding power that the government possesses concerning market control, it is still possible to assert that a substantial amount of regulation enables even the lowest of individuals within the society to have a considerable impact on the economic growth and still allow power to remain in the confines of politicians.

References

Flanders, S. (Writer) & Quinn, T. (Director). (2012). Masters of money: Hayek [Television series episode]. In M. Tuft (Producer), Masters of money. United Kingdom: British Broadcasting Corporation.