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Ralph Hawtrey: A forgotten pioneer of macroeconomics

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  • David Glasner

Abstract

This article considers the contributions of Ralph Hawtrey to monetary theory and macroeconomics, focusing on his monetary business cycle theory and his monetary explanation of the Great Depression. Unlike Milton Friedman's US‐centred explanation of the Great Depression, Hawtrey's was focused on the international gold standard that collapsed with the outset of World War I and the attempt to restore it. Hawtrey urged that, after restoration of the gold standard, increased monetary demand for gold be restrained to prevent gold appreciation and deflation. But deliberate French gold accumulation in 1928 and interest‐rate increases by the Federal Reserve, led to the ruinous deflation foreseen by Hawtrey. The article then critically evaluates recent discussions of Hawtrey's contributions in books by Hetzel (2023) and Mattei (2022).

Suggested Citation

  • David Glasner, 2024. "Ralph Hawtrey: A forgotten pioneer of macroeconomics," Economic Affairs, Wiley Blackwell, vol. 44(2), pages 245-266, June.
    • Handle: RePEc:bla:ecaffa:v:44:y:2024:i:2:p:245-266
    DOI: 10.1111/ecaf.12647
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    References listed on IDEAS

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    1. David Glasner, 2021. "Studies in the History of Monetary Theory," Palgrave Studies in the History of Economic Thought, Palgrave Macmillan, number 978-3-030-83426-5.
    2. Meltzer, Allan H., 2004. "A History of the Federal Reserve, Volume 1: 1913-1951," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226520001.
    3. Eichengreen, Barry, 1996. "Golden Fetters: The Gold Standard and the Great Depression, 1919-1939," OUP Catalogue, Oxford University Press, number 9780195101133.
    4. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, August.
    5. Douglas A. Irwin, 2014. "Who Anticipated the Great Depression? Gustav Cassel versus Keynes and Hayek on the Interwar Gold Standard," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(1), pages 199-227, February.
    6. Peter Temin, 1991. "Lessons from the Great Depression," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262700441, December.
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