How are economists Hayek and Keynes' ideas respectively used in America today?

[Hunter Malavey]

For an economics project, my group and I are researching famous econmists Hayek and Keynes. We've found much information, but still are in desperate need of how their ideas are implemented into the United States economic system today. All help is appreciated.

[juicebox]

The federal government approaches economic policy in a slightly Keynesian matter. They use automatic stabilizers to stabilize fluctuations in gdp: i.e. whenever a recession occurs, unemployment benefits, food stamps and other programs automatically begin dispensing payments and benefits to people who lost their jobs etc, and when the economy is overheating the reverse happens. The idea is to lean against the wind; to increase demand in the economy for goods and services when its a recession, and to reduce it when it's overheating.

Hayek's ideas aren't really used in economic policy today, and (bias here) I think Srafa really won in his arguments against him. His economic ideas didn't gain much traction, so he moved onto political philosophy, where he proved himself to be sharp and incisive. Hayek's political ideas certainly are influential in modern America, which stresses a limitation on the government's influence in the economy for fear that this will devolve into totalitarianism (which btw is inconclusive, advanced economies have extensive intervention into their economies while maintaining liberal democratic regimes).
However, Hayek's ideas concerning the workings of the free market are brilliant; he definitively disproved the notion that central planning was more efficient than the free market, and he eloquently expounded how prices transmit information about resources, and how this made the market economy an efficient allocator of resources.

[Anjaree]

The Keynesian model with stimulus package during the recession is well-known. But the coordination between monetary and fiscal policy today must go to the works of Hayek. Hayek's works on the theory of money and economic fluctuation have influenced the ideas that a free market in money is the best to create a stable and healthy currency. His comment against the Austrian school that the boom and bust which is claimed to be because of the central bank's inflationary credit expansion, is wrong. It is in fact,not because of the central bank,but the instability of the market.You might know that why Ron could not get nomination when he proposed to get rid off the FED. And thanks to Hayek for his concept of the government involvement in the economy, especially the creation of the social safety-net in the US.