Capital Theory, Crises, and Business Cycles: The Triangular Debate between Hayek, Keynes, and Sraffa
DOI:
https://doi.org/10.6000/1929-7092.2015.04.19Keywords:
Business cycles, Capital theory, Crises, F.A. von Hayek, J.M. Keynes, P. SraffaAbstract
The paper discusses aspects of the triangular debate between Hayek, Keynes, and Sraffa on economic crises, business cycles and the role of capital theory in an analysis of these phenomena. It is argued that Sraffa was both critical of Hayek's monetary overinvestment theory and Keynes's use of the concept of commodity rates of interest Sraffa had employed in his criticism of Hayek and of Keynes's theory of liquidity preference.
References
Fisher, Irving (1907). The Rate of Interest. New York: Macmillan.
Gehrke, Christian and Heinz D. Kurz (2006). “Sraffa on von Bortkiewicz: Reconstructing the Classical Theory of Value and Distribution.” History of Political Economy 38(1): 91-149.
http://dx.doi.org/10.1215/00182702-38-1-91
Hayek, Friedrich A. v. (1931a). “Reflections on the Pure Theory of Money of Mr. J. M. Keynes.” Economica 11: 270-95.
http://dx.doi.org/10.2307/2548035
Hayek, Friedrich A. v. (1931b). Prices and Production. London: Routledge and Kegan Paul.
Hayek, Friedrich A. v. (1932b). “Money and Capital: a Reply.” Economic Journal 42: 237-249.
http://dx.doi.org/10.2307/2223821
Keynes, John M. (1971-88). The Collected Writings of John Maynard Keynes, 30 vols, managing eds. A. Robinson and D. Moggridge. London: Macmillan. In the text referred to as CW.
Kurz, Heinz D. (1996). “Sraffa und die Keynessche Theorie der Liquiditätspräferenz.” Homo oeconomicus 13(3): 363-91.
Kurz, Heinz D. (2000). “The Hayek-Keynes-Sraffa Controversy Reconsidered.” Pp. 257-301, in Critical Essays on Piero Sraffa’s Legacy in Economics, edited by H.D. Kurz. Cambridge: Cambridge University Press.
http://dx.doi.org/10.1017/CBO9781139166881.007
Kurz, Heinz D. (2006). “The Agents of Production Are the Commodities Themselves. On the Classical Theory of Production, Distribution and Value.” Structural Change and Economic Dynamics 17: 1-26.
http://dx.doi.org/10.1016/j.strueco.2005.04.001
Kurz, Heinz D. (2010). “Keynes, Sraffa, and the Latter’s ‘Secret Skepticism’.” Pp. 184-220, in The Return to Keynes, edited by B. Bateman, T. Hirai and C. Marcuzzo. Cambridge, MA and London, UK: The Belknap Press of Harvard University Press.
Kurz, Heinz D. (2012). “Schumpeter’s New Combinations. Revisiting His Theorie der wirtschaftlichen Entwicklung on the Occasion of its Centenary.” Journal of Evolutionary Economics 22: 871-99.
http://dx.doi.org/10.1007/s00191-012-0295-z
Kurz, Heinz D. and Neri Salvadori (1995). Theory of Production. A Long-period Analysis. Cambridge: Cambridge University Press. (Paperback edn 1997).
http://dx.doi.org/10.1017/cbo9780511625770
Ranchetti, F. (2002), “On the Relationship between Sraffa and Keynes.” Pp. 311-331, in Piero Sraffa’s Political Economy. A Centenary Estimate, edited by T. Cozzi and R. Marchionatti. London and New York: Routledge.
Sraffa, Piero (1932a). “Dr. Hayek on Money and Capital.” Economic Journal 42(1): 42-53.
http://dx.doi.org/10.2307/2223735
Sraffa, Piero (1932b). “A Rejoinder.” Economic Journal 42(2): 249-51.
http://dx.doi.org/10.2307/2223822
Sraffa, Piero (1960). Production of Commodities by Means of Commodities. Cambridge: Cambridge University Press.
Wicksell, Knut (1898). Geldzins und Güterpreise. Jena: Gustav Fischer.
Gehrke, Christian and Heinz D. Kurz (2006). “Sraffa on von Bortkiewicz: Reconstructing the Classical Theory of Value and Distribution.” History of Political Economy 38(1): 91-149.
http://dx.doi.org/10.1215/00182702-38-1-91
Hayek, Friedrich A. v. (1931a). “Reflections on the Pure Theory of Money of Mr. J. M. Keynes.” Economica 11: 270-95.
http://dx.doi.org/10.2307/2548035
Hayek, Friedrich A. v. (1931b). Prices and Production. London: Routledge and Kegan Paul.
Hayek, Friedrich A. v. (1932b). “Money and Capital: a Reply.” Economic Journal 42: 237-249.
http://dx.doi.org/10.2307/2223821
Keynes, John M. (1971-88). The Collected Writings of John Maynard Keynes, 30 vols, managing eds. A. Robinson and D. Moggridge. London: Macmillan. In the text referred to as CW.
Kurz, Heinz D. (1996). “Sraffa und die Keynessche Theorie der Liquiditätspräferenz.” Homo oeconomicus 13(3): 363-91.
Kurz, Heinz D. (2000). “The Hayek-Keynes-Sraffa Controversy Reconsidered.” Pp. 257-301, in Critical Essays on Piero Sraffa’s Legacy in Economics, edited by H.D. Kurz. Cambridge: Cambridge University Press.
http://dx.doi.org/10.1017/CBO9781139166881.007
Kurz, Heinz D. (2006). “The Agents of Production Are the Commodities Themselves. On the Classical Theory of Production, Distribution and Value.” Structural Change and Economic Dynamics 17: 1-26.
http://dx.doi.org/10.1016/j.strueco.2005.04.001
Kurz, Heinz D. (2010). “Keynes, Sraffa, and the Latter’s ‘Secret Skepticism’.” Pp. 184-220, in The Return to Keynes, edited by B. Bateman, T. Hirai and C. Marcuzzo. Cambridge, MA and London, UK: The Belknap Press of Harvard University Press.
Kurz, Heinz D. (2012). “Schumpeter’s New Combinations. Revisiting His Theorie der wirtschaftlichen Entwicklung on the Occasion of its Centenary.” Journal of Evolutionary Economics 22: 871-99.
http://dx.doi.org/10.1007/s00191-012-0295-z
Kurz, Heinz D. and Neri Salvadori (1995). Theory of Production. A Long-period Analysis. Cambridge: Cambridge University Press. (Paperback edn 1997).
http://dx.doi.org/10.1017/cbo9780511625770
Ranchetti, F. (2002), “On the Relationship between Sraffa and Keynes.” Pp. 311-331, in Piero Sraffa’s Political Economy. A Centenary Estimate, edited by T. Cozzi and R. Marchionatti. London and New York: Routledge.
Sraffa, Piero (1932a). “Dr. Hayek on Money and Capital.” Economic Journal 42(1): 42-53.
http://dx.doi.org/10.2307/2223735
Sraffa, Piero (1932b). “A Rejoinder.” Economic Journal 42(2): 249-51.
http://dx.doi.org/10.2307/2223822
Sraffa, Piero (1960). Production of Commodities by Means of Commodities. Cambridge: Cambridge University Press.
Wicksell, Knut (1898). Geldzins und Güterpreise. Jena: Gustav Fischer.
Downloads
Published
2015-12-14
How to Cite
Kurz, H. D. (2015). Capital Theory, Crises, and Business Cycles: The Triangular Debate between Hayek, Keynes, and Sraffa. Journal of Reviews on Global Economics, 4, 186–191. https://doi.org/10.6000/1929-7092.2015.04.19
Issue
Section
Special Issue - Hayek, Keynes and the Crisis: Analyses and Remedies. An Introduction
License
Policy for Journals/Articles with Open Access
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work
Policy for Journals / Manuscript with Paid Access
Authors who publish with this journal agree to the following terms:
- Publisher retain copyright .
- Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .
