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...

In a discussion with Haberler, Keynes defended his analysis of wage cuts as distinct and superior to that of the ‘classical economists’. This essay addresses the issue of this debate by proceeding in three steps. First, we single out the most important common elements of the pre- Keynesian...