ABSTRACT
In the interwar period, several Swedish economists took up the Wicksellian theme. This chapter focuses on two of the leading Swedish figures during this time, Gunnar Myrdal and Erik Lindahl. Both devoted attention to the problems of ‘periods’, ‘plans’ and expectations. Ludwig von Mises’ The Theory of Money and Credit interweaves several theoretical schemata. His first task is to develop a theory of the value of money that overcomes the ‘Austrian circularity’ problem. In his later work, Ludwig von Mises suggested his own version of what ‘periods’ should mean in economic analysis and offered a theory of expectations formation. Friedrich A. Hayek was the most prominent proponent and refiner of the Knut Wicksell–Mises business-cycle theory. In the later 1930s and 1940s, Hayek’s research in this area led him to rethink what ‘equilibrium’ meant and what its existence required in terms of coordinating interpersonal plans in and across time.
