ABSTRACT
The connection between Austrian economics and Keynes can easily be made through the well-known debate which had occurred in the 1930s between Hayek and Keynes. The controversy began with Hayek’s lengthy critical review of Keynes’s Treatise in the August 1931 issue of Economica. Keynes published a reply in the November issue of Economica. The second part of Hayek’s review was published in February 1932. On 29 March 1932, Keynes put a stop to the discussion, announcing to Hayek that he would not reply to the second part of the review because he preferred to devote his time to revising his theory, a revision which led in 1936 to the publication of Keynes’s General Theory. Hayek, who had invested time and energy into preparing his review, was very disappointed by Keynes’s reaction (Hayek 1966: 241). Hayek therefore did not comment on Keynes’s General Theory in an official journal.
