Robert Skidelsky — Hayek vs Keynes: The Road to Reconcilliation

Here.  Quotable:

“The common ground [between Hayek and Keynes] was created by the run-up to the war, and by the war itself. The war clarified for both men the values they shared. ‘Our object in this mad, unavoidable struggle’, Keynes declared on 12 December 1939, ‘is not to conquer Germany, but…to bring her back within the historic fold of Western civilisation of which the institutional foundations are…the Christian Ethic, the Scientific Spirit and the Rule of Law. It is only on these foundations that the personal life can be lived’. The full employment which the war produced also whittled away their differences in economics. Hayek praised Keynes’s anti-inflationary pamphlet How to Pay for the War: ‘It is reassuring to know’, Hayek wrote to Keynes after reading his anti-inflationary pamphlet How to Pay for the War, ‘that we agree so completely on the economics of scarcity, even if we differ on when it applies’. In turn, Keynes cordially welcomed Hayek’s Road to Serfdom: ‘It is a grand book…Morally and philosophically I find myself in agreement with virtually the whole of it; and not only in agreement, but in deeply moved agreement’.”

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