Kaldor Between Hayek and Keynes, or: Did Nicky Kill Capital Theory?
Kaldor is famous as a leading member of that great generation of Cambridge economists — Joan Robinson, Piero Sraffa, Richard Kahn and himself — who together attempted the construction of an alternative paradigm to the neo-Classical/neo-Keynesian synthesis. For Joan Robinson and Richard Kahn, the engagement with Keynes’ economics was a continuous one and indeed part of the permanent revolution in economic thinking going on in Cambridge in the 1920s. Piero Sraffa started one phase of that revolution — the one in value theory — but his commitment to the Keynesian revolution was very slight. Indeed one could say that the two Cambridge revolutions, one started by Sraffa in 1926 and the other by Keynes in 1936 (although known earlier in Cambridge), were in contradiction with each other by the 1960s. The second Sraffa revolution begun in 1960 was a fulfilment of the one previously launched in 1926 but it had a value and capital theory that sat uncomfortably with the Keynesian revolution. Despite his intimate acquaintance with and encouragement of Sraffa’s work, Keynes in his General Theory took in his value theory a pre-Sraffa Marshallian line as far as he took any. Joan Robinson who with her exceptional rigour had worked out the consequences of the first two revolutions, Sraffa 1926 and Keynes 1936, bore the brunt of reconciling the second Sraffa revolution with the Keynesian revolution (See essays in Eatwell and Milgate, 1983).
KeywordsIncome Assure Rium Defend Stake
Unable to display preview. Download preview PDF.
- Desai, M. (1982), ‘The Tasks of Monetary Theory: Hayek-Sraffa Debate in Modern Perspective’, in M. Baranzini (ed.), Advances in Economic Theory (Oxford: Blackwell).Google Scholar
- —— (1987), ‘Profit theory’, in J. Eatwell, M. Milgate, P. Newman (eds), The New Palgrave: A Dictionary of Economics (London, New York: Macmillan).Google Scholar
- —— (1988) Hayek (Brighton: Wheatsheaf).Google Scholar
- Eastham, J. K. (ed.) Economic Essays in the Commemoration of the Dundee School of Economics (Dundee, Scotland, University of Dundee Press).Google Scholar
- Eatwell, J. and M. Milgate (eds) (1983): Keynes’ Economics and the Theory of Value and Distribution (London, Duckworth).Google Scholar
- Gilbert, J. C. (1955) Professor Hayek’s Contribution to Trade Cycle Theory in Eastham, pp. 57–62.Google Scholar
- Hayek, F. (1929/1933) Monetary Theory and the Trade Cycle, German original 1929, English translation by Honor Croome and N. Kaldor (London; Cape).Google Scholar
- —— (1929/1933) The Paradox of Savings, German original 1929, English translation by N. Kaldor and G. Tugendhat in PII.Google Scholar
- —— (1931) Prices and Production (London: G. Routledge and Sons).Google Scholar
- —— (1937/1939) ‘Investments that Increase the Demand for Capital’, Review of Economics and Statistics, 1937, reprinted in PII.Google Scholar
- —— (1939) Profit, Interest and Investment (London: Routledge).Google Scholar
- —— (1941) The Pure Theory of Capital (London: Routledge).Google Scholar
- Kaldor, N. (1934/1960) ‘On the Determinateness of Equilibrium’, Review of Economic Studies, 1934, reprinted in Essays on Value and Distribution (1960).Google Scholar
- —— (1937/1960) ‘The Controversy on the Theory of Capital’, Economica, 1937, July, reprinted in Essays on Value and Distribution (1960).Google Scholar
- —— (1938/1960) ‘A Rejoinder to Professor Knight’, Economica, 1938, April, reprinted in Essays on Value and Distribution (1960).Google Scholar
- —— (1939/1960), ‘Capital Intensity and the Trade Cycle’, Economica, February, reprinted in Essays on Economic Stability and Growth (1960).Google Scholar
- —— (1942/1960) ‘Professor Hayek and the Concertina Effect’, Economica, November, reprinted in Essays on Economic Stability and Growth (1960).Google Scholar
- —— (1960) Essays on Value and Distribution (Essays on Value and Distribution) (London: Duckworth).Google Scholar
- —— (1960) Essays on Economic Stability and Growth (Essays on Economic Stability and Growth) (London: Duckworth).Google Scholar
- Thirlwall, A. (1987) Kaldor (Brighton: Wheatsheaf).Google Scholar