F. A. Hayek vs. J. M. Keynes in Shackle's marginal gloss

The intellectual rivalry of F.A. Hayek and J.M. Keynes has recently caught the attention of historians of economic thought, journalists and the broad public. However, how was it viewed at the time? This article uses archival material in the form of marginal annotations made by G.L.S. Shackle to determine contemporary reading responses to the theoretical developments of the 1930s. Shackle’s unique reading style that includes legible, dated, annotations and the fact that a substantial part of his academic library survives, gives us a unique vantage point from which to explore anew this period of intellectual history

Did Hayek and Robbins Deepen the Great Depression?

Contrary to some accounts, the Hayek-Robbins ("Austrian") theory of the business cycle did not prescribe a monetary policy of "liquidationism" in the sense of passive indifference to sharp deflation during the early years of the Great Depression. There is no evidence that Hayek or Robbins influenced any "liquidationist" in the Hoover administration or the Federal Reserve System. Federal Reserve policy during the Great Depression was instead influenced by the real bills doctrine, which (despite some apparent similarities) was diametrically opposed in key respects to Hayek's norms for central bank policy. Copyright (c) 2008 The Ohio State University.