The Manhattan Institute is proud to announce that Alberto Alesina, Carlo Favero, and Francesco Giavazzi will be awarded the annual Hayek Book Prize for their book Austerity: When It Works and When It Doesn’t, published by Princeton University Press. The group will share a $50,000 award.
“We are very honored for the prize, given how impressive were the contributions of the other finalists. The world does not need austerity now, but very soon enormous government debts will have to be dealt with. We hope this book will help to think about how to do it,” Alesina, Favero, and Giavazzi commented.
Speaking of the five books that won the honor of finalist for the prize, Jury Chair Amity Shlaes said, “In a time when a health crisis has caused Americans to turn to government, these books remind us that the best way to recovery lies with markets, not government expansion. Our winner, Austerity, couldn’t be timelier, providing evidence that when it comes time to implement these policies, government cutbacks beat higher taxes.”
“Congratulations to Professors Alesina, Favero, and Giavazzi for their richly deserved prize. Drawing on the experience of 16 countries both before and after the 2008 financial crisis, Austerity carefully explores the relationship between fiscal discipline and economic growth and reaches conclusions that represent a powerful challenge to the conventional wisdom,” added Manhattan Institute President Reihan Salam.
Austerity was one of five finalists which were announced in March:
- Austerity: When it Works and When it Doesn't by Alberto Alesina, Carlo Favero, and Francesco Giavazzi (Princeton University Press, February 19, 2019)
- Big Business: A Love Letter to an American Anti-Hero by Tyler Cowen (St. Martin's Press, April 9, 2019)
- The Conservative Sensibility by George F. Will (Hachette Books, June 4, 2019)
- Margaret Thatcher: The Authorized Biography series by Charles Moore (Allen Lane/Penguin UK, 2014-2019)
- Russia's Crony Capitalism: The Path from Market Economy to Kleptocracy by Anders Åslund (Yale University Press, May 21, 2019)
Alberto Alesina is the Nathaniel Ropes Professor of Political Economy at Harvard University. He is the author, with Francesco Giavazzi, of The Future of Europe: Reform or Decline. Carlo Favero is the Deutsche Bank Chair in Quantitative Finance and Asset Pricing at Bocconi University in Italy. He is the author of Applied Macroeconometrics. Francesco Giavazzi is professor of economics at Bocconi University.
About the Hayek Lecture and Book Prize
Political philosopher and Nobel laureate F. A. Hayek, author of groundbreaking works such as The Road to Serfdom and The Constitution of Liberty, was the key figure in the twentieth century revival of classical liberalism. He was also a formative influence on the Manhattan Institute. When our founder, Sir Antony Fisher, asked how best to reverse the erosion of freedom, Hayek advised him not to begin with politics per se but to fight first on the battlefield of ideas. The Hayek Lecture and Prize affirm and celebrate this mission.