Hayek, highly influenced by Mach as a young man, began reading him immediately following his return from service in World War I. He remarked about fo… - Alan O. Ebenstein

Hayek was too harsh on Freud. It is, indeed, one of the surprising facts of the development of intellectual thought during the twentieth century that Freud—who was so pervasive and dominating during the first half of that century—virtually dropped off the face of the map during the second half. Hayek was almost the last person still talking about Freud, in the sense of taking him as a serious living influence on civilization.

Indeed, Hayek’s later monetary work constitutes some of his most creative practical policy suggestions, though his thought in the area was, by his own admission, undeveloped.

Hayek’s essential gist in capital theory was that capital is heterogeneous, that it cannot be put to many uses simultaneously or at different times. If these empirical assumptions as to capital’s heterogeneity are false, then his theoretical system of economic activity falls. Hayek never established that changes in interest rates primarily and predominantly influence capital production of goods of higher order and their prices.