Contra Keynes and Cambridge: Essays, Correspondence
In 1931, when the young F. A. Hayek challenged the economic theories of John Maynard Keynes, sixteen years his senior, and one of the world's leading economists, he sparked a spirited debate that would influence economic policy in democratic countries for decades. Their extensive exchange lasted until Keynes's death in 1946, and is reprinted in its entirety in this latest volume of The Collected Works of F. A. Hayek.
When the journal Economica published a review of Keynes's Treatise on Money by Hayek in 1931, Keynes's response consisted principlally of an attack on Hayek's own work on monetary theory, Prices and Production. Conducted almost entirely in economics journals, the battle that followed revealed two very different responses to a world in economic crisis. Keynes sought a revision of the liberal political order—arguing for greater government intervention in the hope of protecting against the painful fluctuations of the business cycle. Hayek instead warned that state involvement would cause irreparable damage to the economy.
This volume begins with Hayek's 1963 reminiscence "The Economics of the 1930s as Seen from London," which has never been published before. The articles, letters, and reviews from journals published in the 1930s are followed by Hayek's later reflections on Keynes's work and influence. The Introduction by Bruce Caldwell puts the debate in context, providing detailed information about the economists in Keynes's circle at Cambridge, their role in the acceptance of his ideas, and the ways in which theory affected policy during the interwar period.
Caldwell calls the debate between Hayek and Keynes "a battle for the minds of the rising generation of British-trained economists." There is no doubt that Keynes won the battle during his lifetime. Now, when many of Hayek's ideas have been vindicated by the collapse of collectivist economies and the revival of the free market around the world, this book clarifies Hayek's work on monetary theory—formed in heated opposition to Keynes—and illuminates his efforts to fight protectionism in an age of economic crisis.
F. A. Hayek (1899-1992), recipient of the Medal of Freedom in 1991 and co-winner of the Nobel Memorial Prize in Economics in 1974, was a pioneer in monetary theory and the principal proponent of classical liberal thought in the twentieth century. He taught at the University of London, the University of Chicago, and the University of Freiburg.
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The Economics of the 1930s as Seen from London
The Paradox of Saving
Reflections on the Pure Theory of Money of Mr J M Keynes
The Pure Theory of Money A Reply to Dr Hayek by J M Keynes
A Rejoinder to Mr Keynes
The Early HayekKeynes Correspondence
Money and Capital A Reply
Review of Harrods Life of J M Keynes
Review of Sir William Beveridge Full Employment in a Free Society
Symposium on Keynes Why?
Personal Recollections of Keynes and the Keynesian Revolution
The Keynes Centenary The Austrian Critique
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additional amount analysis assumption Austrian Cambridge capitalistic cause chapter circulating capital commodities concept consumers cost of production criticism demand for consumption deposits discussion Economic Journal economic theory Economica economists edition Edwin Cannan effect entrepreneurs equilibrium Essays existing capital expenditure extension of production F. A. Hayek fact factors of production fall fixed capital Foster and Catchings Ibid income increase inflation J. M. Keynes Joan Robinson John Maynard Keynes Keynes's Keynesian Lionel Robbins London means of production Messrs Foster monetary theory natural rate Nicholas Kaldor original means period Piero Sraffa price level Prices and Production problem production of consumption profits proportion Pure Theory quantity of money rate of interest relative prices reprinted Robbins saving and investment Sraffa stages of production structure of production supply theoretical theory of capital Theory of Money Treatise on Money volume of money Wicksell