Hawtrey and Keynes

R. G. Hawtrey, like J. M. Keynes, was a Cambridge graduate in mathematics, an Apostle, influenced by the Cambridge philosopher G. E. Moore, and connected to the Bloomsbury Group. Though eventually overshadowed by Keynes, Hawtrey, after publishing Currency and Credit in 1919, was in the front rank of monetary economists. This chapter explores their relationship during the 1920s and 1930s, focusing on their interactions about restoring an international gold standard after World War I, the 1925 decision to restore the convertibility of sterling, Hawtrey’s articulation of what became known as the "Treasury view," Hawtrey's commentary on Keynes's Treatise on Money, Keynes's questioning of Hawtrey after his testimony before the Macmillan Committee, their differences about short-term and long interest rates as monetary-policy instruments, Hawtrey's disagreement with Keynes about the causes of the Great Depression, and finally their correspondence about the General Theory.