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Maynard and Fritz Maynard and Fritz
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Keynes’s Treatise and Hayek’s Review Keynes’s Treatise and Hayek’s Review
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Keynes Responds Keynes Responds
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Battles over Policy Battles over Policy
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Conclusion Conclusion
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17 The Encounter with Keynes
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Published:November 2022
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Abstract
This chapter describes the academic exchange in the early 1930s between John Maynard Keynes and Friedrich Hayek over their respective monetary theories and over the implications that such theories might carry for matters of policy. Here, it is easy to overlook the fact that for all their apparent differences, Keynes and Hayek in fact shared many similarities. Soon after their initial exchange, Hayek and Keynes had begun a not altogether useful correspondence on the merits of their respective frameworks. Later on, both Keynes and Hayek would begin rethinking their respective theoretical frameworks. As for Hayek's relationship with Keynes, they would encounter each other regularly at the quarterly London and Cambridge Economic Services meetings, and then get to know each other much better, once the world turned to war again and LSE relocated to Cambridge.
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