Lord Keynes — Bruce Caldwell on the Flaw in Hayek’s Early Business Cycle Theory

This anecdote has always seemed strange, but I assume that Hayek here must have been thinking of an economy with full use of resources when he said that extra demand might increase unemployment: an assumption so utterly bizarre in the depths of the Great Depression, it is no wonder if people thought Hayek was crazy.

Read it at Social Democracy for the 21st Century
Bruce Caldwell on the Flaw in Hayek’s Early Business Cycle Theory
by "Lord Keynes"