The Foundations of Modern Austrian Economics

Edited by: Dolan, Edwin G.
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First Pub. Date
1976
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Kansas City: Sheed and Ward, Inc.
Pub. Date
1976
Comments
Collected essays, various authors. 1976 conference proceedings. Includes essays by Gerald P. O'Driscoll, Israel M. Kirzner, Murray N. Rothbard, Ludwig M. Lachmann, and more.

1. [1] See in particular Ludwig von Mises, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949); also see idem, Epistemological Problems of Economics, trans. George Reisman (Princeton: D. Van Nostrand, 1960).

2. [2] See Murray N. Rothbard, "Praxeology as the Method of Economics," in Phenomenology and the Social Sciences, ed. Maurice Natanson, 2 vols. (Evanston: Northwestern University Press, 1973), 2: 323-35; also see Marian Bowley, Nassau Senior and Classical Economics (New York: Augustus M. Kelley, 1949), pp 27-65; and T. W. Hutchison, "Some Themes from Investigations into Method," in Carl Menger and the Austrian School of Economics, ed. J. R. Hicks and Wilhelm Weber (Oxford: Clarendon Press, 1973), pp. 15-31.

3. [3] In answer to the criticism that not all action is directed to some future point of time, see Walter Block, "A Comment on 'The Extraordinary Claim of Praxeology' by Professor Gutierrez," Theory and Decision 3(1973): 381-82.

4. [4] See Mises, Human Action, pp. 101-2; and esp., Block, "Comment," p. 383.

5. [5] For a typical criticism of praxeology for not using mathematical logic, see George J. Schuller, "Rejoinder," American Economic Review 41(March 1951):188.

6. [6] John Maynard Keynes, The General Theory of Employment, Interest, and Money (New York: Harcourt, Brace & Co., 1936), pp.297-98.

7. [7] See Murray N. Rothbard, "Toward a Reconstruction of Utility and Welfare Economics," in On Freedom and Free Enterprise, ed. M. Sennholz (Princeton: D. Van Nostrand, 1956), p.227; idem, Man, Economy and State, 2 vols. (Princeton: D. Van Nostrand, 1962), 1:65-66. On mathematical logic as being subordinate to verbal logic, see René Poirier, "Logique," in Vocabulaire technique et critique de la philosophie, ed. André Lalande, 6th ed. rev. (Paris: Presses Universitaires de France, 1951), pp. 574-75.

8. [8] Bruno Leoni and Eugenio Frola, "On Mathematical Thinking in Economics" (unpublished manuscript privately distributed), pp.23-24; the Italian version of this article is "Possibilita di applicazione della matematiche alle discipline economiche," Il Politico 20(1955).

9. [9] Jean-Baptiste Say, A Treatise on Political Economy (New York: Augustus M. Kelley, 1964), p. xxvi n.

10. [10] Boris Ischboldin, "A Critique on Econometrics," Review of Social Economy 18(September 1960): 11 n.; Ischboldin's discussion is based on the construction of I. M. Bochenski, "Scholastic and Aristotelian Logic," Proceedings of the American Catholic Philosophical Association 30(1956): 112-17.

11. [11] Karl Menger, "Austrian Marginalism and Mathematical Economics," in Carl Menger, p.41.

12. [12] Mises, Human Action, p. 34.

13. [13] John Wild, "Phenomenology and Metaphysics," in The Return to Reason: Essays in Realistic Philosophy, ed. John Wild (Chicago: Henry Regnery, 1953), pp. 48, 37-57.

14. [14] Harmon M. Chapman, "Realism and Phenomenology," in Return to Reason, p. 29. On the interrelated functions of sense and reason and their respective roles in human cognition of reality, see Francis H. Parker, "Realistic Epistemology," ibid., pp. 167-69.

15. [15] See Murray N. Rothbard, "In Defense of 'Extreme Apriorism,'" Southern Economic Journal 23(January 1957): 315-18. It should be clear from the current paper that the term extreme apriorism is a misnomer for praxeology.

16. [16] Say, Treatise, pp. xxv-xxvi, xlv.

17. [17] Friedrich A. Hayek, "The Nature and History of the Problem," in Collectivist Economic Planning, ed. F. A. Hayek (London: George Routledge & Sons, 1935), p. 11.

18. [18] John Elliott Cairnes, The Character and Logical Method of Political Economy, 2d ed. (London: Macmillan & Co., 1875), pp. 87-88 (Cairnes's italics).

19. [19] Bowley, Nassau Senior, pp. 43, 56.

20. [20] Mises, Epistemological Problems, p. 19.

21. [21] Bowley, Nassau Senior, pp. 64-65.

22. [22] Hao Wong, "Notes on the Analytic-Synthetic Distinction," Theoria 21(1955):158; see also John Wild and J. L. Cobitz, "On the Distinction between the Analytic and the Synthetic," Philosophy and Phenomenological Research 8(June 1948):651-67.

23. [23] John J. Toohey, Notes on Epistemology, rev. ed. (Washington, D.C.: Georgetown University, 1937), p. 36 (Toohey's italics).

24. [24] R. P. Phillips, Modern Thomistic Philosophy (Westminster, Md.: Newman Bookshop, 1934-35) 2:36-37; see also Murray N. Rothbard, "The Mantle of Science," in Scientism and Values, ed. Helmut Schoeck and J. W. Wiggins (Princeton: D. Van Nostrand, 1960), pp. 162-65.

25. [25] Toohey, Notes on Epistemology, p. 10 (Toohey's italics).

26. [26] Alfred Schutz, Collected Papers of Alfred Schutz, vol. 2, Studies in Social Theory, ed. A. Brodersen (The Hague: Nijhoff, 1964), p. 4; see also Mises, Human Action, p. 24.

27. [27] Ibid., vol. 1, The Problem of Social Reality, p. 65. On the philosophical presuppositions of science, see Andrew G. Van Melsen, The Philosophy of Nature (Pittsburg: Duquesne University Press, 1953), pp. 6-29. On common sense as the groundwork of philosophy, see Toohey, Notes on Epistemology, pp. 74, 106-13. On the application of a similar point of view to the methodology of economics, see Frank H. Knight, "'What is Truth' in Economics," in On the History and Method of Economics (Chicago: University of Chicago Press, 1956), pp. 151-78.

28. [28] Joseph Dorfman, The Economic Mind in American Civilization, 5 vols. (New York: Viking Press, 1949) 3:376.

29. [29] Friedrich A. Hayek, "The Non Sequitur of the 'Dependence Effect,'" in Studies in Philosophy, Politics, and Economics, ed. Friedrich A. Hayek (Chicago: University of Chicago Press, 1967), pp. 314-15.

30. [30] Mises, Human Action, p. 124.

31. [31] See Rothbard, "Toward a Reconstruction," pp. 230-31.

32. [32] Ludwig von Mises, Theory and History (New Haven: Yale University Press, 1957).

33. [33] Mises, Human Action, pp. 55-56, 348.

34. [34] Cowles Commission for Research in Economics, Report for Period, January 1, 1948-June 30, 1949 (Chicago: University of Chicago Press, 1949), p. 7, quoted in Mises, Theory and History, pp. 10-11.

35. [35] Ibid., pp. 10-11.

36. [36] Ludwig von Mises, "Comments about the Mathematical Treatment of Economic Problems" (unpublished manuscript), p. 3; the German language version of this essay is "Bemerkungen über die mathematische Behandlung nationalökonomischer Probleme," Studium Generale 6 (1953): 662-65.

37. [37] Mises, Theory and History, pp. 11-12; see also Leoni and Frola, "On Mathematical Thinking," pp. 1-8; and Leland B. Yeager, "Measurement as Scientific Method in Economics," American Journal of Economics and Sociology 16(July 1957): 337-46.

38. [38] Alfred Schutz, The Phenomenology of the Social World (Evanston: Northwestern University Press, 1967), pp. 137, 245; also see Ludwig M. Lachmann, The Legacy of Max Weber (Berkeley, Calif.: The Glendessary Press, 1971), pp. 17-48.

Part 2, Essay 2, On the Method of Austrian Economics

39. [39] Friedrich A. Hayek, The Counter-revolution of Science: Studies on the Abuse of Reason (Glencoe, Ill.: Free Press, 1955), p. 39.

40. [40] Alexander Gerschenkron, "Reflection on Ideology as a Methodological and Historical Problem," in Money, Growth, and Methodology, ed. Hugo Hegeland (Lund: C. W. K. Gleerup, 1961), p. 180.

41. [41] Ludwig M. Lachmann, "Methodological Individualism and the Market Economy," in Roads to Freedom: Essays in Honour of Friedrich A. von Hayek, ed. Erich Streissler et al. (London: Routledge & Kegan Paul, 1969), pp. 93-104.

42. [42] Ludwig M. Lachmann, "Sir John Hicks as a Neo-Austrian," South African Journal of Economics 41 (September 1973): 204.

43. [43] Carl Menger, Problems of Economics and Sociology, trans. Francis J. Nock, ed. L. Schneider (Urbana: University of Illinois, 1963). The title of the 1884 German edition of the work is Untersuchungen über die Methode der Socialwissenschaften und der Politischen Oekonomieinsbesondere, and it is therefore sometimes referred to as Investigations into Method, which more correctly indicates the character of its contents.

44. [44] T. W. Hutchison, A Review of Economic Doctrines, 1870-1929 (Oxford: Clarendon Press, 1954), p. 148; idem, "Some Themes from Investigations into Method," in Carl Menger and the Austrian School of Economics, ed. J. R. Hicks and Wilhelm Weber (Oxford: Clarendon Press, 1974), p. 17 n.

45. [45] This letter was composed in 1884; see the reference to it in W. Jaffé, "Unpublished Papers and Letters of Léon Walras," Journal of Political Economy 43(April 1935): 187-207; also see Léon Walras, Correspondence of Léon Walras and Related Papers, ed. W. Jaffe, 2 vols. (Amsterdam: North-Holland Publishing Co., 1965), 2:3.

46. [46] Emil Kauder, A History of Marginal Utility Theory (Princeton: Princeton University Press, 1965), p. 97.

47. [47] Hutchison, "Some Themes," p. 18; Hutchison explained that the source of this term is in Karl Popper, The Poverty of Historicism (New York: Harper & Row, 1961), pp. 28-38.

48. [48] T. W. Hutchison, The Significance and Basic Postulates of Economic Theory (London: Macmillan & Co., 1938).

49. [49] Frank H. Knight, "'What is Truth' in Economics," in On the History and Method of Economics, ed. Frank H. Knight (Chicago: University of Chicago Press, 1956), p. 160.

50. [50] Hayek, The Counter-revolution, pp. 26-27.

51. [51] Ibid., pp. 24, 31, 209-10.

52. [52] James M. Buchanan, "Is Economics the Science of Choice?" in Roads to Freedom: Essays in Honour of Friedrich A. von Hayek, ed. Erich Streissler et al. (London: Routledge & Kegan Paul, 1969), pp. 47-65; see also James M. Buchanan, Cost and Choice (Chicago: Markham Publishing Co., 1970).

53. [53] Gary S. Becker, "Irrational Behavior and Economic Theory," Journal of Political Economy 70(February 1962): 1-13.

54. [54] Friedrich A. Hayek, "Economics and Knowledge," in Individualism and Economic Order (London: Routledge & Kegan Paul, 1952), p. 46.

Part 2, Essay 3, New Light on the Prehistory of the Austrian School

55. [55] Lewis H. Haney, History of Economic Thought, 4th ed. (New York: Macmillan Co., 1949), pp. 106-8.

56. [56] R. H. Tawney, Religion and the Rise of Capitalism (New York: New American Library, 1954), pp. 38-39.

57. [57] Joseph A. Schumpeter, A History of Economic Analysis (New York: Oxford University Press, 1954).

58. [58] Marjorie Grice-Hutchinson, The School of Salamanca: Readings in Spanish Monetary Theory, 1544-1605 (Oxford: Clarendon Press, 1952).

59. [59] Ibid., p. 27.

60. [60] Luis Saravia de la Calle, Instruccion de mercaderes (1544), in Grice-Hutchinson, School of Salamanca, pp.79-82.

61. [61] Ibid., p. 48.

62. [62] Francisco Garcia, Tratado utilisimo y muy general de todos los contractos (1583), in Grice-Hutchinson, School of Salamanca, pp. 104-5.

63. [63] Martin de Azpilcueta Navarro, Comentario resolutorio de usuras (1556), in Grice-Hutchinson, School of Salamanca, pp. 94-95.

64. [64] Domingo de Soto, De Justitia et Jure (1553), in Grice-Hutchinson, School of Salamanca, p. 55.

65. [65] Luis de Molina, Disputationes de Contractibus (1601), in Grice-Hutchinson, School of Salamanca, pp. 113-14; Tomás de Mercado, Tratos y contratos de mercaderes (1569), ibid., pp. 57-58 and; Domingo de BaÑez, De Justitia et Jure (1594), ibid., pp. 96-103.

66. [66] Raymond de Roover, "Scholastic Economics: Survival and Lasting Influence from the Sixteenth Century to Adam Smith," Quarterly Journal of Economics 69(May 1955): 161-90; reprinted in idem, Business, Banking, and Economic Thought (Chicago: University of Chicago Press, 1974), pp. 306-35.

67. [67] Ibid., p. 309.

68. [68] Raymond de Roover, "Joseph A. Schumpeter and Scholastic Economics," Kyklos 10(1957):128. De Roover traced the concept of mutual benefit as exhibited in exchange back to Aquinas, who wrote that "buying and selling seem to have been instituted for the mutual advantage of both parties, since one needs something that belongs to the other, and conversely" (ibid., p. 128).

69. [69] De Roover, Business, pp. 312-14. Elsewhere de Roover noted that the Scotists were a small minority among medieval and later Scholastics, whereas the Scholastics discussed here were in the mainstream of Thomist tradition.

70. [70] Raymond de Roover, "The Concept of the Just Price: Theory and Economic Policy," Journal of Economic History 18(December 1958):422-23.

71. [71] De Roover, "Just Price," p. 424.

72. [72] Ibid., p. 426.

73. [73] David Herlihy, "The Concept of the Just Price: Discussion," Journal of Economic History 18(December 1958):437.

74. [74] In particular, the theologians at the great center at the University of Paris in the early thirteenth century: Alexander of Hales and Aquinas's teacher, Albertus Magnus (ibid., p. 71). Baldwin further pointed out that theological treatment of such practical questions as the just price in the Middle Ages only began with the development of university centers at the end of the twelfth century (ibid., p. 9).

75. [75] Raymond de Roover, "The Scholastic Attitude toward Trade and Entrepreneurship," Explorations in Entrepreneurial History 2(1963):76-87; reprinted in idem, Business, pp. 336-45.

76. [76] De Roover, here and in his other writings, pointed to the great deficiency in Scholastic analysis of the market: the belief that any interest on a pure loan (a mutuum) constituted the sin of usury. The reason is that while the Scholastic understood the economic functions of risk and opportunity cost, they never arrived at the concept of time preference. On the Scholastics and usury, see the magisterial work of John T. Noonan, Jr., The Scholastic Analysis of Usury (Cambridge: Harvard University Press, 1957); see also Raymond de Roover, "The Scholastics, Usury, and Foreign Exchange," Business History Review. 41(1967):257-71.

77. [77] Raymond de Roover, San Bernardino of Siena and Sant' Antonino of Florence: The Two Great Economic Thinkers of the Middle Ages (Boston: Kress Library of Business and Economics, 1967).

78. [78] Ibid., p. 17.

79. [79] On the originality of Olivi, see ibid., p. 19.

80. [80] Ibid., p. 20.

81. [81] Ibid., pp. 23-24.

82. [82] On the later influence of the Scholastics, see Schumpeter, History, pp. 94-106; Grice-Hutchinson, School of Salamanca, pp. 59-78; de Roover, Business, pp. 330-35; and de Roover, "Joseph Schumpeter," p. 128-29.

83. [83] Emil Kauder, "Genesis of the Marginal Utility Theory: From Aristotle to the End of the Eighteenth Century," Economic Journal 63(September 1953):638-50.

84. [84] Schumpeter, History, p. 300.

85. [85] Kauder, "Genesis," p. 645.

86. [86] Schumpeter, History, p. 249; see also ibid., pp. 259-61, 332-33.

87. [87] In Kauder "Genesis," p. 647. Kauder and Schumpeter also noted the early eighteenth-century French mathematician Daniel Bernoulli (1738), who outside the stream of economic thought developed a mathematical version of the diminishing marginal utility of money (ibid., pp. 647-50: Schumpeter, History, pp. 302-5).

88. [88] Emil Kauder, "The Retarded Acceptance of the Marginal Utility Theory," Quarterly Journal of Economics 67 (November 1953):564-75.

89. [89] Ibid., p. 569.

90. [90] Ibid., pp. 570-71. These two articles are essentially represented in Emil Kauder, A History of Marginal Utility Theory (Princeton: Princeton University Press, 1965), pp. 3-29.

91. [91] Emil Kauder, "Intellectual and Political Roots of the Older Austrian School," Zeitschrift für Nationalökonomie 17(December 1957):411-25.

92. [92] Ibid., p. 417.

93. [93] Ibid., p. 418.

94. [94] Ibid.

95. [95] Ibid., p. 420; see also Kauder, History of Marginal Utility, pp. 90-100. On Menger as Aristotelian, also see T. W. Hutchison, "Some Themes from Investigations into Method," in Carl Menger and the Austrian School of Economics, ed. J. R. Hicks and Wilhelm Weber (Oxford: Clarendon Press, 1973), pp. 17-20.

Part 2, Essay 4, Philosophical and Ethical Implications of Austrian Economics

96. [96] Carl Menger, Problems of Economics and Sociology, trans. F. J. Nock, ed. L. Schneider (Urbana: University of Illinois Press, 1963), pp. 235-37; see above p. 51, note 5.

97. [97] Joseph A. Schumpeter, History of Economic Analysis (New York: Oxford University Press, 1954), p. 802.

98. [98] See T. W. Hutchison, "Positive" Economics and Policy Objectives (Cambridge: Harvard University Press, 1964), p. 43.

99. [99] Schumpeter, History, p. 805.

100. [100] See Lionel Robbins, An Essay on the Nature and Significance of Economic Science, 2d ed. (London: Macmillan & Co., 1935), pp. xv-xvi.

101. [101] Ludwig von Mises, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949), pp. 72-91.

102. [102] Gunnar Myrdal, The Political Element in the Development of Economic Theory (Cambridge: Harvard University Press, 1954), p. 12.

103. [103] Ibid., p. 18.

104. [104] Ibid., pp. 56-76.

105. [105] Ibid., p. vii.

106. [106] Ibid.

107. [107] Ibid., p. viii.

108. [108] Ibid., p. 128.

109. [109] Fritz Machlup, "Review of G. Myrdal, The Political Element in the Development of Economic Theory," American Economic Review 45(December 1955):950.

110. [110] Hutchison, "Positive" Economics, p. 42.

111. [111] John Davenport, "From a Western Window: Economics and Philosophy Have Need of Each Other," Intercollegiate Review 8(Spring 1973):147-58.

112. [112] Ibid., p. 151.

113. [113] Israel M. Kirzner, "Letter to the Editor," Intercollegiate Review 9(Winter 1973-74): pp. 59-60.

114. [114] This disagreement with Davenport does not imply that I am unwilling to endorse his principal theme, that is, the need for economists to speak out not merely as wertfrei professionals but also as concerned citizens. Professionals must be concerned with moral as well as scientific truth.

115. [115] See Richard Whately, Introductory Lectures on Political Economy,Delivered at Oxford in Easter Term, 1831,4th ed.(London:John W. Parker, 1855), p. 25.

116. [116] See Murray N. Rothbard, "Value Implications of Economic Theory," American Economist 17(Spring 1973):35-39; see also Clarence E. Philbrook, " 'Realism' in Policy Espousal," American Economic Review 43(December 1953):379-82.

117. [117] See Israel M. Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1973), pp. 213-22. Hayek's critique of welfare economics was presented in "The Use of Knowledge in Society," American Economic Review 35(September 1945):519-30.

118. [118] Kirzner, Competition and Entrepreneurship, pp. 212-42.

Part 2, Essay 5, Praxeology, Value Judgments, and Public Policy

119. [119] Felix Adler, "The Relation of Ethics to Social Science," in Congress of Arts and Science, ed. H.J.Rogers(Boston: Houghton Mifflin Co., 1906), 7:678.

120. [120] See the critique of the inconsistency of the championing of intellectual honesty by the great opponent of objective ethics, Max Weber, in Leo Strauss, Natural Right and History (Chicago: University of Chicago Press, 1953), pp. 47-48.

121. [121] Henry C. Simons, Personal Income Taxation (1938), pp. 18-19, cited by Walter J. Blum and Harry Kalven, Jr., The Uneasy Case for Progressive Taxation (Chicago: University of Chicago Press, 1953), p. 72.

122. [122] Murray N. Rothbard, Egalitarianism as a Revolt against Nature, and Other Essays (Washington, D. C.: Libertarian Review Press, 1974), pp. 2-3.; also see idem, Power and Market (Menlo Park, Calif.: Institute for Humane Studies, 1970), pp. 157-160.

123. [123] Adler, "Relation of Ethics," p. 673.

124. [124] Murray N. Rothbard, "Value Implications of Economic Theory," The American Economist 17 (Spring 1973), pp. 38-39.

125. [125] William D. Grampp, The Manchester School of Economics (Stanford: Stanford University Press, 1960), p. 59; also see Rothbard, "Value Implications," pp. 36-37.

126. [126] For a further analysis of this question, see Walter Block, "Coase and Demsetz on Private Property Rights: A Comment" (unpublished manuscript, privately distributed).

127. [127] Murray N. Rothbard, "Toward a Reconstruction of Utility and Welfare Economics," in On Freedom and Free Enterprise: Essays in Honor of Ludwig von Mises, ed. Mary Sennholz (Princeton: D. Van Nostrand, 1956), pp. 224-32, 243-62.

128. [128] Rothbard, "Toward a Reconstruction," pp. 228-30; also see Ludwig von Mises, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949), pp. 102-4. Samuelson's views may be found, among other places, in Paul A. Samuelson, "The Empirical Implications of Utility Analysis," Econometrica 6 (October 1938):344-56; and idem, Foundations of Economics (Cambridge: Harvard University Press, 1947), pp. 146-63.

129. [129] For a posing of this question, see William E. Rappard, "On Reading von Mises," in On Freedom and Free Enterprise, ed. Sennholz, pp. 17-33.

130. [130] Mises, Human Action, p. 879.

131. [131] Ibid., p. 758 (Mises's italics).

132. [132] Ibid., p. 95.

133. [133] Mises himself conceded at one point that a government or a political party may advocate policies for "demagogic," i.e., for hidden and unannounced, reasons (ibid., p. 104 n.).

134. [134] Ibid., pp. 670, 670 n.

135. [135] Ibid., pp. 153-54.

136. [136] Rothbard, Power and Market, pp. 194-96.

137. [137] Mises, Human Action, pp. 851-55.

138. [138] Rappard, "On Reading von Mises," pp. 32-33.

139. [139] Ibid., p. 33.

140. [140] Ludwig von Mises, "Epistemological Relativism in the Sciences of Human Action," in Relativism and the Study of Man, ed. Helmut Schoeck and J. W. Wiggins (Princeton: D. Van Nostrand, 1961), p. 133.

Part 3, Essay 1, Equilibrium versus Market Process

1. [1] For an elaboration of a number of issues raised in this paper, see Israel M. Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1973).

2. [2] Joseph A. Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper & Row, 1942), pp. 81-106.

3. [3] Oscar Morgenstern, "Thirteen Critical Points in Contemporary Economic Theory: An Interpretation," Journal of Economic Literature 10(December 1972):1163-89.

4. [4] Ludwig M. Lachmann, "Methodological Individualism and the Market Economy," in Roads to Freedom: Essays in Honour of Friedrich A. von Hayek, ed. Erich Streissler et al. (London: Routledge & Kegan Paul, 1969), p. 89.

5. [5] Alfred Marshall, Principles of Economics, ed. C. W. Guillebaud, 2 vols. (London: Macmillan & Co., 1961), 1:345-48; Marshall sometimes used the Walrasian approach (ibid., pp. 333-36).

6. [6] Lionel Robbins, An Essay on the Nature and Significance of Economic Science (London: Macmillan & Co., 1962), pp. 1-23.

7. [7] Ludwig von Mises, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949), pp. 11-142; on the comparison of Misesian and Robbinsian notions, see Israel M. Kirzner, The Economic Point of View (Princeton: D. Van Nostrand, 1960), pp. 108-85.

8. [8] In the preface to the first edition of his book, Robbins acknowledged his debt to Mises (On the Nature, pp. xv-xvi).

9. [9] Kirzner, Competition, pp. 75-87.

10. [10] Edward Hastings Chamberlin, The Theory of Monopolistic Competition, 7th ed. (Cambridge: Harvard University Press, 1962), pp. 123-29.

11. [11] See the literature cited in Kirzner, Competition, pp. 141-69.

Part 3, Essay 2, On the Central Concept of Austrian Economics: Market Process

12. [12] Karl R. Popper, The Poverty of Historicism (London: Routledge & Kegan Paul, 1957).

13. [13] Ludwig M. Lachmann, "Methodological Individualism and the Market Economy," in Roads to Freedom: Essays in Honour of Friedrich A. von Hayek, ed. Erich Streissler et al. (London: Routledge & Kegan Paul, 1969), p.91.

Part 3, Essay 3, The Theory of Capital

14. [14] John R. Hicks, Capital and Time: A Neo-Austrian Theory (Oxford: Clarendon Press, 1973).

15. [15] John R. Hicks, "Capital Controversies: Ancient and Modern," American Economic Review 64(May 1974):307-16.

16. [16] Ibid., p. 308.

17. [17] Ibid., p. 309.

18. [18] John R. Hicks, The Theory of Wages, 2d ed. (London: Macmillan & Co., 1963), pp. 342-48.

19. [19] Ibid.

20. [20] John Bates Clark, The Distribution of Wealth (1899; reprinted., New York: Kelley & Millman, Inc., 1956), p. 117; Friedrich A. Hayek, The Pure Theory of Capital (London: Routledge & Kegan Paul, 1941), p. 93; George J. Stigler, Production and Distribution Theories: The Formative Period (New York: Macmillan Co., 1941), pp. 308-10.

21. [21] See Frank H. Knight, "Capital, Time, and the Interest Rate," Economica 1(August 1934):259; idem, "The Theory of Investment Once More: Mr. Boulding and the Austrians," Quarterly Journal of Economics 50 (November 1935):57; and idem, "The Ricardian Theory of Production and Distribution," in On the History and Method of Economics, ed. Frank H. Knight (Chicago: University of Chicago Press, 1956), p. 47; see also Hayek, Pure Theory, pp. 93-94.

22. [22] Eugen von böhm-Bawerk, Positive Theory of capital, vol. 2, Capital and Interest,trans. George D.Huncke and Hans F. Sennholz(South Holland, Ill.: Libertarian Press, 1959), pp. 60-66, 282; see also Israel M. Kirzner, An Essay on capital (New York: Augustus M. Kelley, 1966),p.123.

23. [23] See particularly Friedrich A. Hayek, "The Mythology of Capital," Quarterly Journal of Economics 50(February 1936): 199-228.

24. [24] Hicks, "Capital Controversies," p. 309.

25. [25] Ibid., p. 315.

26. [26] This refers to the 1973 rather than the 1963 classification that Hicks presented.

27. [27] Hicks, Theory of Wages, p. 343.

28. [28] See, for example, Robert Dorfman, "A Graphical Exposition of Böhm-Bawerk's Interest Theory," Review of Economic Studies 26(February 1959):153-58; Kirzner, Essay on Capital, pp. 84-86.

29. [29] See Frank A. Fetter's remarks in "The 'Roundabout Process' in the Interest Theory," Quarterly Journal of Economics 17(November 1902):177.

30. [30] Hayek, "Mythology," pp. 204-10; idem, Pure Theory, pp. 93, 146-53, 189-92.

31. [31] Ludwig von Mises, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949), p. 264; for Mises's views on capital and interest, see Israel M. Kirzner, "Ludwig von Mises and the Theory of Capital and Interest," in The Economics of Ludwig von Mises: Toward a Critical Reappraisal, ed. Laurence S. Moss (Kansas City: Sheed & Ward, 1976).

32. [32] See Kirzner, Essay on Capital, pp. 103-41.

33. [33] Mises, Human Action, pp. 495-99, 611.

Part 3, Essay 4, On Austrian Capital Theory

34. [34] John Hicks, Capital and Time; A Neo-Austrian Theory (Oxford: Clarendon Press, 1973), p. 12.

35. [35] Joseph A. Schumpeter, A History of Economic Analysis (New York: Oxford University Press, 1954), p. 847.

36. [36] Paul A. Samuelson, "A Summing Up," Quarterly Journal of Economics 80(November 1966):568-83.

37. [37] Hicks, Capital and Time, p. 45.

38. [38] Carl Menger, "Zur Theorie des Kapitals," in The Collected Works of Carl Menger, ed. Friedrich A. Hayek, 4 vols.(London: London School of Economics, 1936)3: 135-83.

39. [39] Hicks, Capital and Time, p. 12.

40. [40] Ibid., p. 184.

41. [41] L. L. Pasinetti, "Switches of Technique and the 'Rate of Return,'" Economic Journal 79(September 1969):523.

Part 3, Essay 4, Toward a Critique of Macroeconomics

42. [42] "An equilibrium path, let us remember, is a path that will (and can) be followed if expectations are appropriate to it, and if the initial capital stock is appropriate to it; both conditions are necessary" (John Hicks, Capital and Growth [Oxford: Oxford University Press, 1965], p. 116).

43. [43] John Maynard Keynes, The General Theory of Employment, Interest, and Money (New York: Harcourt, Brace & World, 1936), pp. 66-73.

44. [44] Douglas C. Hague, "Summary Record of the Debate," in The Theory of Capital, ed. F. A. Lutz and D. C. Hague (London: Macmillan & Co., 1961), pp. 305-6.

Part 3, Essay 6, The Austrian Theory of Money

45. [45] Ludwig von Mises, Theorie des Geldes und der Umlaufsmittel (1912); see the third English edition, The Theory of Money and Credit (New Haven: Yale University Press, 1953).

46. [46] On the changes in relative prices attendant on an increase in the money supply, see Mises, Theory of Money and Credit, pp. 139-45.

47. [47] For more on the fallacies of measurement and index numbers, see Mises, Theory of Money and Credit, pp. 187-94; idem, Human Action: A Treatise on Economics (New Haven: Yale University Press, 1949), pp. 221-24; Murray N. Rothbard, Man, Economy, and State (Princeton: D. Van Nostrand, 1962), 2:737-40; Bassett Jones, Horses and Apples: A Study of Index Numbers (New York: John Day & Co., 1934); and Oskar Morgenstern, On the Accuracy of Economic Observations 2d ed. rev. (Princeton: Princeton University Press, 1963).

48. [48] See Mises, Theory of Money and Credit, pp. 170-78.

49. [49] Chi-Yuen Wu, An Outline of International Price Theories (London: George Routledge & Sons, 1939), p. 126.

50. [50] Wu, Outline, p. 284; Mises, Theory of Money and Credit, p. 178. Mises's development of the theory was independent of Senior's because the latter was only published in 1928 in Industrial Efficiency and Social Economy (New York, 1928), pp. 55-56; see Wu, Outline, p. 127 n.

51. [51] Wu, Outline, p. 250; Mises's formulation is in Theory of Money and Credit, pp. 179-88.

52. [52] See Wu, Outline, pp. 251-60.

53. [53] Mises's regression theorem may be found in Theory of Money and Credit, pp. 97-123. For an explanation and a diagrammatic representation of the regression theorem, see Rothbard, Man, Economy, and State, pp. 231-37. Menger's insight into the origin of money on the market may be found in Carl Menger, Principles of Economics (Glencoe, Ill.: Free Press, 1950), pp. 257-62. On the relationship between Menger's approach and the regression theorem, see Mises, Human Action, pp. 402-4.

54. [54] Mises, Human Action, pp. 405-7. The regression analysis was either adopted by or arrived at independently by William A. Scott in Money and Banking, 6th ed. (New York: Henry Holt & Co., 1926), pp. 54-55.

55. [55] J. C. Gilbert, "The Demand for Money: The Development of an Economic Concept," Journal of Political Economy 61(April 1953):149.

56. [56] Don Patinkin, Money, Interest, and Prices (Evanston, Ill.: Row, Peterson & Co., 1956), pp. 71-72, 414.

57. [57] Paul A. Samuelson, Foundations of Economic Analysis (Cambridge: Harvard University Press, 1947), pp. 117-18.

58. [58] George J. Stigler, Production and Distribution Theories: The Formative Period (New York: Macmillan Co., 1946), p. 181; also see the similar, if more polite, attack on Menger by Frank H. Knight, "Introduction," in Menger, Principles, p. 23. For a contrasting discussion by the mathematical economist son of Menger, Karl Menger, see "Austrian Marginalism and Mathematical Economics," in Carl Menger and the Austrian School of Economics, ed. John R. Hicks and Wilhelm Weber (Oxford: Clarendon Press, 1973), pp. 54-60.

59. [59] Mises, Human Action, p. 250.

60. [60] Ibid., pp. 249-50, 414.

61. [61] F. H. Hahn, "On Some Problems of Proving the Existence of an Equilibrium in a Monetary Economy," in The Theory of Interest Rates, ed. F. H. Hahn and F. P. R. Breckling (London: Macmillan & Co., 1965), pp. 128-32.

62. [62] Mises, Human Action, p. 418.

63. [63] On the advantages of a secularly falling price "level," see C. A. Phillips, T. F. McManus, and R. W. Nelson, Banking and the Business Cycle (New York: Macmillan Co., 1937), pp. 186-88, 203-7.

64. [64] Costantino Bresciani-Turroni, The Economics of Inflation (London: George Allen & Unwin, 1937), pp. 80-82; also see Frank D. Graham, Exchange, Prices, and Production in Hyper-inflation: Germany 1920-23 (New York: Russell & Russell, 1930), pp. 104-7. For an analysis of hyperinflation, see Mises, Theory of Money and Credit, pp. 227-30; and idem, Human Action, pp. 423-25.

65. [65] Rudolf Havenstein, Address to the Executive Committee of the Reichsbank, 25 August 1923, translated in Fritz K. Ringer, ed., The German Inflation of 1923 (New York: Oxford University Press, 1969), p. 96.

66. [66] See Denis S. Karnofsky, "Real Money Balances: A Misleading Indicator of Monetary Actions," Federal Reserve Bank of St. Louis Review 56(February 1974):2-10.

67. [67] market price of approximatelyTheory of Money and Credit, pp. 448-57; also see Michael A. Heilperin, Aspects of the Pathology of Money (Geneva: Michael Joseph, 1968); and Jacques Rueff, The Monetary Sin of the West (New York: Macmillan Co., 1972).

68. [68] See Mises, Human Action, pp. 431-45.

69. [69] Leland B. Yeager, "Essential Properties of the Medium of Exchange," Kyklos (1968), reprinted in Monetary Theory, ed. R. W. Clower (London: Penguin Books, 1969), p. 38.

Part 3, Essay 7, Inflation, Recession, and Stagflation

70. [70] John B. Egger, "Information and Unemployment in the Trade Cycle" (Paper delivered at Second Symposium on Austrian Economics, University of Hartford, June 1975), p. 16.

71. [71] The eleven countries are: Belgium, Canada, France, Israel, Japan, Netherlands, Sweden, Switzerland, United Kingdom, United States, and West Germany. For data supporting the statements in the text, see Arthur Seldon, ed., Inflation: Economy and Society (London: Institute of Economic Affairs, 1972), Appendix.

72. [72] See, for example, United Nations, Economic Commission for Europe, Economic Survey of Europe in 1961: Some Factors in Economic Growth in Europe during the 1950's (E/ECE/452/Add. 1) (Geneva 1954), pp. 23-32; Great Britain, Council on Prices, Productivity, and Incomes, Fourth Report (HMSO 1961); Great Britain, National Economic Development Council, Conditions Favourable to Faster Growth (HMSO April 1963); Great Britain, National Economic Development Council, Growth in the U.K. Economy to 1966 (HMSO February 1963); Political and Economic Planning, Growth in the British Economy (London: Allen & Unwin, 1960), pp. 1-53, 197-219; Angus Maddison, Economic Growth in the West: Comparative Experience in Europe and North America (London: Allen & Unwin, 1964).

73. [73] Organization for Economic Cooperation and Development, OECD Economic Outlook, 14(December 1973):32; ibid., 15(July 1974):18.

74. [74] See tables referred to in note 2; also see Organization for Economic Cooperation and Development, OECD Economic Outlook 15(July 1974):73-77; and almost any issue of The Economist, e.g., "To Meet Slumpflation" and "Mass Unemployment Ahead?" The Economist 250(23 March 1974):14-16; "Before Taking to Wheelbarrows," The Economist 252(20 July 1974):65-66; see also the report from Peter Jay, "OECD forecasts increased inflation in Britain for first half of next year; Reflation 'would make matters worse,'" Times (London), 3 October 1974, p. 1; and National Institute of Economic and Social Research, National Institute Economic Review 69(August 1974):4-26.

75. [75] J.C.R. Dow, The Management of the British Economy, 1945-60 (Cambridge: Cambridge University Press, 1964), chap. 13; L.A. Dicks-Mireaux, Cost or Demand Inflation? Woolwich Economic Papers, no. 6 (London, 1965).

76. [76] Nicholas Kaldor, "The New Monetarism," Lloyd's Bank Review, no. 97 (July 1970), pp. 1-17.

77. [77] Ibid.; see also Joan Mitchell, "Why We Need an Incomes Policy," Lloyd's Bank Review, no. 92 (April 1969), pp. 1-14.

78. [78] This view is shared by several Austrians as well; see Ludwig M. Lachmann, Macroeconomic Thinking and the Market Economy, Institute of Economic Affairs, Hobart Paper no. 56 (London, 1973), p. 50.

79. [79] For an indirect demonstration that the existence of money makes sense only in a multicommodity world and that a multicommodity world is virtually inconceivable in the absence of a medium of exchange, see Carl Menger, Principles of Economics (Glencoe, Ill.: Free Press, 1950), pp. 236-85. It should be pointed out that in the more sophisticated versions of the Keynesian analysis, changes in interest rates do affect the prices of investment goods relative to the prices of consumer goods. See the extensive discussions of aggregation in Axel Leijonhufvud, On Keynesian Economics and the Economics of Keynes (New York: Oxford University Press, 1969), pp.20-23, 111-85.

80. [80] "The aspect of Keynes' theory which has created the most trouble...is his theory of interest—which is rather a theory of short-run interest movements" (Leijonhufvud, Keynesian Economics, pp. 12-13). We maintain that modern Keynesian writers have still not solved this problem.

81. [81] D. H. Robertson, "Mr. Keynes and the Rate of Interest," in Essays in Monetary Theory, ed. idem (London: P. S. King & Son, 1940), p. 25.

82. [82] See Charles W. Baird, Macroeconomics (Chicago: Science Research Associates, 1973), for an example of a recent attempt to introduce price-level flexibility and to adopt a micro approach in macroanalysis. Attempts like this, though praiseworthy, have not been successful. Microanalysis deals with pricing and resource allocation and hence with the time structure of output and prices. Microeconomics is far more than the analysis of single prices in isolation. Manipulation of price levels would seem to have little to do with microanalysis in this sense.

83. [83] The following analysis and interpretation of the monetarist position is based on Milton Friedman, "A Theoretical Framework for Monetary Analysis," Journal of Political Economy 78(March-April 1970):193-238; idem, "A Monetary Theory of Nominal Income," Journal of Political Economy 79(March-April 1971): 323-37; idem, Dollars and Deficits (Englewood Cliffs, N. J.; Prentice-Hall, 1969).

84. [84] John Stuart Mill, Principles of Political Economy, ed. Sir William Ashley (Clifton Heights, N. J.: Augustus M. Kelley, 1973), p. 491.

85. [85] See Thomas Sowell, Classical Economics Reconsidered (Princeton: Princeton University Press, 1974), pp. 52-66.

86. [86] Friedman admitted that he and Anna J. Schwartz "have little confidence in [their] knowledge of the transmission mechanism, except in such broad and vague terms as to constitute little more than an impressionistic representation rather than an engineering blueprint" (The Optimum Quantity of Money [Chicago: Aldine Publishing Co., 1969], p. 222).

87. [87] Ludwig von Mises, The Theory of Money and Credit (New Haven: Yale University Press, 1953), pp. 124-31.

88. [88] Friedman, "Theoretical Framework," p. 223.

89. [89] Milton Friedman, Dollars and Deficits, pp. 72-96.

90. [90] See Trygve Haavelmo, "What Can Static Equilibrium Models Tell Us?" Economic Inquiry 12(March 1974):27-34.

91. [91] See, for example, "The Rising Risk of Recession," Time Magazine, 19 December 1969, pp. 66-72.

92. [92] Friedrich A. Hayek, The Pure Theory of Capital (London: Routledge & Kegan Paul, 1941), pp. 409-10.

93. [93] F. H. Hahn, "On Some Problems of Proving the Existence of an Equilibrium in a Monetary Economy," in The Theory of Interest Rates, ed. F. H. Hahn and F. P. R. Beckling (London: Macmillan & Co., 1965), pp. 128-32.

94. [94] Menger, Principles, pp. 236-85.

95. [95] Knut Wicksell, Lectures on Political Economy, ed. Lionel Robbins, 2 vols. (New York: Macmillan Co., 1935) 2:141-90.

96. [96] For an appreciation of Mises's contributions to the development of monetary theory, see Laurence S. Moss, "The Monetary Economics of Ludwig von Mises," in The Economics of Ludwig von Mises: Toward a Critical Reappraisal, ed. Laurence S. Moss (Kansas City: Sheed & Ward, 1976).

97. [97] Hayek first presented his monetary analysis of the business cycle to the English-speaking world in four lectures at London University in 1931; see Friedrich A. Hayek, Prices and Production (London: Routledge & Kegan Paul, 1935). His earlier German work on monetary theory was translated and published in 1933; idem, Monetary Theory and the Trade Cycle (New York: Augustus M. Kelley, 1966). In 1939 Hayek developed his theory further in an essay entitled "Profits, Interest, and Investment," which he published along with some of his earlier articles under the same title; see idem, Profits Interest and Investment (New York: Augustus M. Kelley, 1970); see also idem, "Three Elucidations of the Ricardo Effect," Journal of Political Economy 77 (March-April 1969):274-85.

98. [98] Ibid., p. 281.

99. [99] Hayek, Prices and Production.

100. [100] Ludwig M. Lachmann, Capital and Its Structure (London: London School of Economics, 1956).

101. [101] Two types of complementarity exist: "horizontal complementarity," where goods in any one stage of production must be integrated, and "vertical complementarity," where goods must be integrated between stages.

102. [102] Hayek referred to this effect as the "Ricardo effect." For references to Hayek's writings and further explanations, see Gerald P. O'Driscoll, Jr., "The Specialization Gap and the Ricardo Effect: Comment on Ferguson," History of Political Economy 7(Summer 1975): 261-69.

103. [103] The physical durability of a capital good is not the only determining factor in its demand price; also important is its position in the overall capital structure (Hayek, Pure Theory, pp. 46-49).

104. [104] We are discussing changes in the real rate of interest; the nominal rate may vary owing, among other factors, to the impact of future price expectations.

105. [105] Hayek, Pure Theory, pp. 33-34.

106. [106] The view that the effects of monetary expansion are self-reversing meets with hostility; see, for example, Friedman, "Comments on the Critics," Journal of Political Economy 80(September-October 1972): 936-41. It is ironic that, in his 1974 address to the Southern Economics Association in Atlanta, Friedman acknowledged that less unemployment now (caused by an unanticipated increase in the growth rate of the money supply) will result in more unemployment later; that is, cyclical expansions bring about cyclical contractions. While it is true that Friedman's talk made no reference to real factors of the type discussed here, still it is an improvement over his earlier attitude where he refused to consider this form of reasoning at all.

107. [107] See Hayek, "Three Elucidations," pp. 284-85.

108. [108] Even with "indexation," however widespread, new money would still enter the economy at a specific point and first alter some relative prices and outputs before altering other prices and outputs. These misallocations and subsequent corrections would continue as long as the increase in the money supply persisted. Indexation of money payments would merely add yet another unpredictable relative price change to those already set in motion by the monetary disturbances. In particular, some incomes would continue to rise ahead of the consumer price index while others would rise after it. Indexation would only allow for (known) past changes in the consumer price index resulting from those increases in the money supply that had already worked through the economy. It could do little ex ante about present increases in the money supply still working their way through the economy. The case for indexation is made by a number of economists; see especially Milton Friedman, Monetary Correction (London: Institute of Economic Affairs, 1974).

109. [109] Hayek, Profits, Interest, and Investment, pp. 63 n, 64 n.

110. [110] Friedman, Dollars and Deficits, pp. 72-96.

111. [111] Paul W. McCracken, "Are the Latter Days Upon Us?" Wall Street Journal, 22 July 1974, p. 8.

112. [112] Harry G. Johnson, "Mercantilism, Past, Present and Future," Manchester School 42(March 1974):15.

113. [113] Gottfried Haberler, Prosperity and Depression, 5th ed. (London: Allen & Unwin, 1964), pp. viii, xi.

114. [114] The general council of the U.K. Trades Union Congress demanded government subsidies for all firms threated with losses and therefore having to lay off workers; see the report by John Elliott, "TUC urges more government control over redundancies," Financial Times (London), 24 October 1974, p. 1.

115. [115] Thus aggregate money expenditure rose by 248 percent in the United Kingdom between 1949 and 1969, but output rose only 69 percent. Similar money increases may be adduced for other developed countries. Nevertheless, Denis Healey, chancellor of the exchequer, found it necessary to issue a warning to the 1974 Conference of the International Monetary Fund not to repeat "the tragedy of the 1930's [by attempting] to deal with inflation by measures likely to produce mass unemployment"; see the report entitled "Mr. Healey warns the world on threat of 1930's tragedy being repeated," and the report from Peter Jay, "Chancellor emphasizes need to avoid mass unemployment," The Times (London), 2 October 1974, p. 1.

116. [116] Paul A. Samuelson, "Worldwide Stagflation," Morgan Guaranty Survey, June 1974, pp. 4-9.

117. [117] From Hayek's remarks at the Mont Pelerin Conference, Caracas, September 1969; these remarks are on record only in Friedrich A. Hayek, A Tiger by The Tail, ed. Sudha R. Shenoy, Institute of Economic Affairs, Hobart Paper no. 4 (London, 1972), p. 112.

Part 4, Essay 1, Austrian Economics in the Age of the Neo-Ricardian Counterrevolution

118. [118] G. L. S. Shackle, "Marginalism: The Harvest," History of Political Economy, Fall 1972, p. 587.

119. [119] For an excellent example of what I mean by neoclassical formalism, consider the following: "Implicit in such analyses there are certain recognizable formal uniformities, which are indeed characteristic of all scientific method. It is proposed here to investigate these common features in the hope of demonstrating how it is possible to deduce general principles which can serve to unify large sectors of present-day economic theory" (Paul A. Samuelson, Foundations of Economic Analysis [Cambridge: Harvard University Press, 1947], p. 7).

120. [120] Israel M. Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1973), p. 214.

121. [121] "L'individu peut disparaitre, pourvu qu'il nous laisse cette photographie de ses goûts" (Vilfredo Pareto, Manuel d'Economie Politique, 2d ed. [Paris, 1927], p. 170).

122. [122] Sometimes the neoclassical formalists remember it in the formulation of their principles—more often they forget it in practice. Consider the following: "In every problem of economic theory certain variables (quantities, policies, etc.) are designated as unknowns, in whose determination we are interested. Their values emerge as a solution of a specific set of relationships imposed upon the unknowns by assumption or hypothesis. These functional relationships hold as of a given environment and milieu" (Samuelson, Foundations, p. 7; italics mine).

123. [123] Frank Horace Hahn, On the Notion of Equilibrium in Economics: An Inaugural Lecture" (Cambridge: Cambridge University Press, 1973), p. 14.

124. [124] John R. Hicks, Capital and Growth (Oxford: Clarendon Press, 1965), p. 185.

125. [125] Luigi L. Pasinetti, "Again on Capital Theory and Solow's 'Rate of Return,'" Economic Journal, June 1970, p. 429 (Pasinetti's italics).

126. [126] Kenneth J. Arrow, "Capitalism, for Better or Worse," in Capitalism: the Moving Target, ed. Leonard Silk (New York: Quadrangle, 1974), pp. 105-113.

127. [127] Robert M. Solow, Growth Theory: An Exposition (Oxford: Oxford University Press, 1970), p. 66.

128. [128] Joan Robinson, Economic Heresies (London: Macmillan & Co., 1971), p. 95; Friedrich A. Hayek, A Tiger by the Tail, ed. Sudha R. Shenoy, Institute of Economic Affairs, Hobart Paper 4 (London, 1972), p. 112.

End of Notes

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