Liberals say that people's motivation to earn money and get economy going is to have great reward and fear of hunger. People work to maximize pleasure and minimize pain, and if government interferes and try to help the economy, people will eventually lose that motivation that economy won't be able to run fluently.
This idea of classical liberalism is obviously opposing socialism and command economy.
His idea was notable that he got Nobel Memorial Prize on Economic Science in 1974. "No one has characterized market mechanisms better than Friedrich von Hayek". (Herbert Simon, The Sciences of the Artificial, 2nd Edition, Cambridge: The MIT Press, 1981, p. 41)
To publish a set of rules asking the managers of state enterprises to behave as if they were profit-maximising entrepreneurs in competitive private industry ignores the actual personal motivations faced by these men; and this approach becomes badly unstuck in the British nationalized industies. You do not make a donkey into a zebra merely by painting stripes on its back.
There is no such choice as depression and no depression, instead, the choice is depression now and worse depression later. Since the depression is part of the economic pattern. "inflation pushed far enough [would] undoubtedly turn depression into the sham prosperity so familiar from European postwar experience, [and]... would, in the end, lead to a collapse worse than the one it was called in to remedy." For "recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone and adds, to an undigested remnant of maladjustment, new maladjustment of its own which has to be liquidated in turn, thus threatening business with another [worse] crisis ahead" (Delong).
As a conclusion, it is impossible to prevent depression, and that depression can be a good medicine for economy, giving opportunity to develop and improve.