Tyler Goodspeed (History and Economics)
“Rethinking the Keynesian Revolution: Keynes, Hayek, and the Wicksell Connection”
This thesis deals with the theoretical contest between J.M. Keynes and Friedrich Hayek over the origins of the business cycle. I contend that although Hayek’s Austrian business cycle theory offered a more promising link to the growth-theoretic long run and an integrated theory of capital, ultimately it lost out to the distinctly English economics of General Theory both because it did not fit into a comparative static framework and because it failed to provide a theory of general unemployment. Throughout, I trace the elements of the Stockholm School of macroeconomic theorizing in the work of both Keynes and Hayek, as the two economists struggled to recast neoclassical economics.