An explanation of two theories of the trade-cycle and the Hayek-Keynes debate.
Written in 2002; 650 words; 1 sources; $ 26.95
Paper Summary:
A review of the work of John P. Cochran and Fred R. Glahe regarding the Hayek-Keynes debate on trade-cycle theory. Both theorists followed the Wicksellian transmission mechanism concerning saving, investment, and interest rates. Keynes expected public's liquidity demand and the banking system's practices to maintain the money interest rate. Hayek proceeded from an expansion of money credit resulting in a money interest rate below the equilibrium rate.
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