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Hayek and Kaldor: close encounter at LSE

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  • Hansjörg Klausinger

    () (Vienna University of Economics and Business - Department of Economics)

Abstract

Friedrich August Hayek and Nicholas Kaldor, both eminent economists, represented two antagonistic approaches, a radical Austrian School-type of liberalism vs an idiosyncratic type of Keynesianism, yet they shared a common starting point in their scientific work at lse during the 1930s. Three phases will be distinguished in the complicated relationship between Hayek and Kaldor in this period, leading from close collaboration via Kaldor’s emancipation eventually to outright conflict, highlighted in particular by the controversy on Hayek’s ‘concertina effect’. This paper not only carefully investigates these three phases at lse but also attempts to show the origins of their drifting away from the mainstream of economics.

Suggested Citation

  • Hansjörg Klausinger, 2011. "Hayek and Kaldor: close encounter at LSE," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 19(3), pages 135-166.
  • Handle: RePEc:hid:journl:v:19:y:2011:3:6:p:135-166
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