Say's Law occupies a prominent, but equivocal, position in the history of economics, the object of repeated controversies about its meaning and significance since first propounded in the nineteenth century. This chapter proposes a unifying interpretation of Say's Law based on the idea that the...

Hayek's early writings on business-cycle theory and the Great Depression argued that cyclical downturns, including that of 1929-1931 were caused by unsustainable elongations of the capital structure caused by bank-financed investment exceeding voluntary saving. Believing that monetary expansion...