ABSTRACT
Hicks’s work in the 1930s opens the way to the basic result of the Neoclassical Synthesis: namely, the reduction of the General Theory to a special case of Classical theory. Hicks reaches the same conclusion in all his major works during this period: 1 In ‘Mr. Keynes and the “Classics”’ (1937), where the General Theory is
linked to the special case of the liquidity trap. 2 In Value and Capital (1939), where Keynes’s analysis is presented as a
special case of his temporary equilibrium model with fixed money wages. 3 In ‘A Suggestion for Simplifying the Theory of Money’ (1935), which
provides the background for his later view that Keynes’s liquidity preference theory is a special case of Cambridge theory and may be analysed using the tools of Neoclassical value theory.
