Editors' Choice - Hayek’s Hidden Critique of The General Theory

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Journal of Reviews on Global Economics

Hayek’s Hidden Critique of The General Theory
Pages 212-224
David Sanz and Juan Morillo

DOI: http://dx.doi.org/10.6000/1929-7092.2015.04.22

Published: 14 December 2015

Open Access 


Abstract: Hayek is seen as one of the main opponents of Keynes because of the debate about macroeconomics that they had in the early thirties. A few years after this controversy, Keynes published The General Theory ([1936] 1973), and Hayek was expected to criticize Keynes’ new model. But, surprisingly, Hayek decided to remain silent and let his opponent go unchallenged. He regretted it ever after. However, this paper argues that in Hayek’s work after 1936, there is a criticism of The General Theory that to a certain extent has remained unnoticed. Thus, this approach reopens the great debate between Hayek and Keynes just where they had apparently left it, that is, after the publication of The General Theory.

Keywords: Keynes, prices, business cycles, macroeconomic policy, unemployment.
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