In 1984, I was appointed Companion of Honor for my services to the field of economics. I was also one of the first recipients of the Hans Martin Schleyer prize in 1984. The year prior to my death, I received the presidential medal of freedom from president George H W. Bush. My Article “The Use of Knowledge in Society” was selected as one of the top 20 articles published in the American Economic Reviews during its first 100 years 

My principal investigations in economics concern capital, money and the business cycle. Using Ludwig Von Mises concept of marginal utility and the value of money in his Theory of money and Credit, I used this as a starting point for my own interpretation of the business cycle, which later on elaborated into Austrian theory of business cycle. I showed the Austrian approach in more detail in my book, which published in 1929, the English translation, Monetary Theory and the Trade Cycle. In the book I argued for a monetary approach to the origins of the cycle. In my Prices and Production (1931), I argued that the business cycle resulted from the central banks inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates. I believe that the past instability of the market economy is the consequence of the exclusion of the most important regulator of the market mechanism, money, from itself being regulated by the market process. I believe that markets should balance out, creating an equilibrium - gluts and shortages should balance themselves out, via market mechanisms. Through achieving that equilibrium, it will lead to an optimal distribution of resources within an economy.

Building on the earlier work of Mises and others, I also argued that while in centrally planned economies an individual or a select group of individuals must determine the distribution of resources, these planners will never have enough information to carry out this allocation reliably. This argument, that was first proposed by Marx Weber says that the efficient exchange and use of resources can be maintained only through the price mechanism in free markets. Therefore, I began to advocate for denationalizing money. Private enterprises with distinct currencies would have a motive to retain their currency's purchasing power. Because I am a strong believer in spontaneous order, however, I can't predict whether they would revert to a gold standard - fixing their currencies around a specific amount of gold.

I investigated the choice of thoery of investment. Through examining the inter-relations between non-permanent production goods and "latent" or potentially economic permanent resources, and building on the choice theoretical insight in which "processes that take more time will evidently not be adopted unless they yield a greater return than those that take less time"

I was one of the leading academic critics of collectivism in the 20th century. Through arguing that all forms of collectivism (even those theoretically based on voluntary co-operation) could only be maintained by a central authority of some kind. From my point of view, the central role of the state should be to maintain the rule of law, with as little arbitrary intervention as possible. In my popular book, The Road to Serfdom(1944) I argued that that socialism required central economic planning and that such planning in turn leads towards totalitarianism.  

In my opinion, liberty is a policy which "deliberately adopts competition, markets, and prices as it ordering principles" (Hayek). Markets guarantee liberty to all individuals, whereas, government intervention causes us to go down the Road to Serfdom. With too much government intervention, it can cause too much money to be injected and taxes to be lowered, causing entrepreneurs to invest in goods and services which consumers  did not want/need. It also incentivizes long-term capital investment which limited the opportunities for entrepreneurs to realize short-term investments and gains, which could help kick-start the economy after times like the Great Depression.