Friedrich Hayek is one of the giants of 20th century economics. He did important work on everything from business cycles to psychology, earning a Nobel Prize in economics in 1974.

However, Hayek is perhaps best known for his book, The Road to Serfdom. Since its publication in 1944, many leaders and politicians have cited it as a proof that countries that experiment with socialism will inevitably end up as a totalitarian state.

Duke economist Bruce Caldwell says that the book's message was much more nuanced and often misinterpreted by later generations.

He sets the record straight in the September issue of the Journal of Economic Literature by expanding on Hayek's thinking and the intellectual climate in which Hayek was writing.

Just as important, Caldwell's research shows the importance of digging into the origins of economic debates.

Caldwell recently spoke with the AEA's Tyler Smith about the intellectual backdrop to The Road to Serfdom, the challenges of writing for a wider audience, and the history of economic ideas.

The edited highlights of that conversation are below, and the full interview can be heard using the podcast player below.