Here is an entertaining way to learn about the two major schools of economic thought. Keynesian economics is what pretty much every government believes at this point. It postulates that governments can positively influence the aggregate demand (therefore dampen recessions) by changing interest rates and government spending.
This approach has created (especially in the US) a situation where entities have become too big to fail and fragile at the same time. At this point, the big entities game-theoretically hold the government hostage to bail them out every time they face difficulties. Politicians don’t want to risk their office seats so they do it… Plus there is always the danger of runaway inflation as a result of government interventions.
Hayek’s philosophy is to rely on markets to self regulate, but the danger here is that markets may not recover as fast. This philosophy is more about financial prudence and keeping the money supply independent from the business cycles. It encourages savings, arguably, better capital allocation decisions as money has scarcity.
Hayek’s view was largely ignored by pretty much everyone until bitcoin arrived. Crypto is an alternative financial system that is aligned with Hayek’s philosophy through the restriction of money supply.
The next crisis will show who was right, as we will have economic data from two independent alternative financial systems to judge the outcomes.
Anyway, these videos do a better job than me… enjoy!