Hayek on the Role of Money Liquidity … Another Idea Keynes Did _Not_ Originate

“In view of the apparently widespread impression that the influence of liquidity considerations on the rate of interest is a new discovery, the present author may perhaps be excused for pointing out that more than ten years ago he described cyclical fluctuations as largely due to the fact that the rate of interest is in the short term ‘determined by considerations of banking liquidity‘ (Hayek, Geldtheorie and Konjunkturtheorie (Vienna: Holder-Pichler-Tempsky, 1929, p. 103).

– F. A. Hayek, The Pure Theory of Capital, 1941/2007, p. 326.

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2 Responses to Hayek on the Role of Money Liquidity … Another Idea Keynes Did _Not_ Originate

  1. Pingback: Browsing Catharsis – 01.22.12 « Increasing Marginal Utility

  2. And of course, though he (Hayek) did not create the wheel (Mises invented the parts), he did assemble it.

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