ABSTRACT
The chapter deals with Sraffa's explicit criticism of Keynes's analysis around his so-called Fundamental Equations in the Treatise. While this theme is in itself of little importance, not least because Keynes himself later recanted his respective views. This allows people to introduce some of Sraffa's early theoretical findings, which form the background of his objections also to later ideas of Keynes. It turns to Keynes's view that investment projects can be ordered independently of the level of the rate of interest according to their marginal efficiencies of capital. This idea is but another expression of what Sraffa dubbed the 'monotonic prejudice' that permeates much of and which can be sustained only in exceptionally special cases. A truly 'general theory', which Keynes aspired to elaborate, had to dispense with this 'prejudice'. The chapter turns to Sraffa's critical account of Friedrich August Hayek's monetary overinvestment theory of the business cycle.
