Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329544 
Authors: 
Year of Publication: 
2023
Citation: 
[Journal:] EconomiA [ISSN:] 2358-2820 [Volume:] 24 [Issue:] 1 [Year:] 2023 [Pages:] 86-114
Publisher: 
Emerald, Bingley
Abstract: 
Purpose: - In the early 1930s, Nicholas Kaldor could be classified as an Austrian economist. The author reconstructs the intertwined paths of Kaldor and Friedrich A. Hayek to disequilibrium economics through the theoretical deficiencies exposed by the Austrian theory of capital and its consequences on equilibrium analysis. Design/methodology/approach: - The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials. Findings: - The integration of capital theory into a business cycle theory by the Austrians and its shortcomings - e.g. criticized by Piero Sraffa and Gunnar Myrdal - called attention to the limitation of the theoretical apparatus of equilibrium analysis in dynamic contexts. This was a central element to Kaldor's emancipation in 1934 and his subsequent conversion to John Maynard Keynes' The General Theory of Employment, Interest, and Money (1936). In addition, it was pivotal to Hayek's reformulation of equilibrium as a social coordination problem in 'Economics and Knowledge' (1937). It also had implications for Kaldor's mature developments, such as the construction of the post-Keynesian models of growth and distribution, the Cambridge capital controversy, and his critique of neoclassical equilibrium economics. Originality/value: - The close encounter between Kaldor and Hayek in the early 1930s, the developments during that decade and its mature consequences are unexplored in the secondary literature. The author attempts to construct a coherent historical narrative that integrates many intertwined elements and personas (e.g. the reception of Knut Wicksell in the English-speaking world; Piero Sraffa's critique of Hayek; Gunnar Myrdal's critique of Wicksell, Hayek, and Keynes; the Hayek-Knight-Kaldor debate; the Kaldor-Hayek debate, etc.) that were not connected until now by previous commentators
Subjects: 
Nicholas Kaldor
Friedrich A. Hayek
Knut Wicksell
Gunnar Myrdal
Expectations
Equilibrium
Capital theory
JEL: 
B13
B22
B25
B3
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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