"In brief the Austrian theory of the business cycle was never refuted or even rejected at the London School, but simply forgotten despite the efforts of Hayek and subsequently Lachmann (as noted below) to improve the theory (Hayek, Profits, Interest, and investment [1939; reprint; New York: Augustus M. Kelley, 1969]). With the Keynesian revolution, macroentities had replaced the action of individuals. Subjectivism and individual causation had been superseded by functional relations among objectified aggregates, which had few if any real world referents in the actions of economizing individuals. A whole tradition transplanted to British soil vanished. When Lachmann had arrived in London during the early 1930s, everybody was a Hayekian, but by the beginning of World War II the only consistent and thoroughgoing Hayekians left were Lachmann and Hayek himself."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Walter E. Grinder, §4 of "Lachmann and the Subjective Paradigm," introduction to Ludwig Lachmann, Capital, Expectations, and the Market Process: Essays on the Theory of the Market Economy, ed. Walter E. Grinder (Kansas City: Sheed Andrews and McMeel, 1977).
https://en.wikiquote.org/wiki/Austrian_business_cycle_theory
Revision History
No revisions have been submitted for this quote.
Categories
Austrian business cycle theory
6 quotes on TrueQuotesView all quotes by Austrian business cycle theory →
Related Quotes
"The question of the value of Hayek’s work in technical economic theory from the middle 1920s through early 1940s is o…"
"For Hayek, the causes of the Depression lay in earlier central bank policies of cheap money, which resulted in large-…"
"Very few people these days know the works of the Mises-Hayek school; unfortunately, I am old enough to have been an e…"
"A few weeks ago, a journalist devoted a substantial part of a profile of yours truly to my failure to pay due attenti…"
"Professor Mises and Dr. Hayek have advanced theories which, though they fall into the general category of monetary ex…"
"Currency devaluations stimulated recovery in two ways: allowing nominal interest rates to fall and, so long as people…"
"This ground-plan, conceived by a great architect, exhibits a fundamental metaphysical dualism in Plato’s thought. ...…"
"These cases present the same question, that is, whether under the Revenue Act of 1934, 26 U.S.C.A. Int.Rev.Acts, page…"
"We are called upon in this case to decide whether under the Investment Advisers Act of 1940 [1] the Securities and Ex…"
"Once upon a time, capital gains were not taxable in Canada. But the federal government instituted a tax on capital ga…"