Synopses & Reviews
Produced throughout the first fifteen years of Hayekandrsquo;s career, the writings collected in Capital and Interest see Hayek elaborate upon and extend his landmark lectures that were published as Prices and Production and work toward the technically sophisticated line of thought seen in his later Pure Theory of Capital. Illuminating the development of Hayekandrsquo;s detailed contributions to capital and interest theory, the collection also sheds light on how Hayekandrsquo;s work related to other influential economists of the time. Highlights include the 1936 article andldquo;The Mythology of Capitalandrdquo;andmdash;presented here alongside Frank Knightandrsquo;s criticisms of the Austrian theory of capital that prompted itandmdash;and andldquo;The Maintenance of Capital,andrdquo; with subsequent comments by the English economist A. C. Pigou. These and other familiar works are accompanied by lesser-known articles and lectures, including a lecture on technological progress and excess capacity. An introduction by the bookandrsquo;s editor, leading Hayek scholar Lawrence H. White, places Hayekandrsquo;s contributions in careful historical context, with ample footnotes and citations for further reading, making this a touchstone addition to the University of Chicago Pressandrsquo;s Collected Works of F. A. Hayek series.
Review
and#8220;If I had to single out the area in which Hayek's contributions were the most fundamental and pathbreaking, I would cast my vote for the theory of capital. . . . It is my sincere conviction that this work contains some of the most penetrating thoughts on the subject that have ever been published.and#8221;
Review
andldquo;Capital and Interest is lucid, logically organized, and speaks clearly to the big issues behind each collection of articles. White has done an exemplary job, chronicling the development of Hayekandrsquo;s thought.andrdquo;
Review
andldquo;An excellent collection. White has expertly organized Hayekandrsquo;s articles on capital theory, supplementing these essays with an accessible introduction that provides a modern appreciation for both the depth of Hayekandrsquo;s thinking and the changes in his views over time.andrdquo;
Synopsis
The Pure Theory of Capital, F. A. Hayekand#8217;s long-overlooked, little-understood volume, was his most detailed work in economic theory. Originally published in 1941 when fashionable economic thought had shifted to John Maynard Keynes, Hayekand#8217;s manifesto of capital theory is now available again for todayand#8217;s students and economists to discover.
With a new introduction by Hayek expert Lawrence H. White, who firmly situates the book not only in historical and theoretical context but within Hayekand#8217;s own life and his struggle to complete the manuscript, this edition commemorates the celebrated scholarand#8217;s last major work in economics. Offering a detailed account of the equilibrium relationships between inputs and outputs in an economy, Hayekand#8217;s stated objective was to make capital theoryand#8212;which had previously been devoted almost entirely to the explanation of interest ratesand#8212;and#8220;useful for the analysis of the monetary phenomena of the real world.and#8221; His ambitious goal was nothing less than to develop a capital theory that could be fully integrated into the business cycle theory.
About the Author
F. A. Hayek (1899-1992), recipient of the Medal of Freedom in 1991 and co-winner of the Nobel Memorial Prize in Economics in 1974, was a pioneer in monetary theoryand#160;and a leading proponent of classical liberalismand#160; in the twentieth century. He taught at the University of London, the University of Chicago, and the University of Freiburg.
Lawrence H. White is the F. A. Hayek Professor of Economic History at the University of Missouriandndash;St. Louis. He is the author of several books, most recently The Theory of Monetary Institutions. His work has appeared in the American Economic Review and other leading journals. He is a visiting professor at Queens University Belfast.
Table of Contents
Editorandrsquo;s Introduction
Oneand#160;and#160;and#160;and#160;and#160;and#160;and#160; Some Observations on the Imputation Problem (1926)
Twoand#160;and#160;and#160;and#160;and#160;and#160;and#160; On the Problem of Interest Theory (1927)
Threeand#160;and#160;and#160;and#160; Utility Analysis and Interest (1936)
Fourand#160;and#160;and#160;and#160;and#160;and#160; Capital Consumption (1932)
Fiveand#160;and#160;and#160;and#160;and#160;and#160;and#160; Saving (1934)
Sixand#160;and#160;and#160;and#160;and#160;and#160;and#160;and#160;and#160; On the Relationship between Investment and Output (1934)
Seven and#160;and#160; Professor Hayek and the Theory of Investment by Frank H. Knight (1935)
Eightand#160;and#160;and#160;and#160;and#160; The Mythology of Capital (1936)
Nineand#160;and#160;and#160;and#160;and#160;and#160; Technical Progress and Excess Capacity (1936)
Tenand#160;and#160;and#160;and#160;and#160;and#160;and#160;and#160; The Maintenance of Capital (1935)
Elevenand#160;and#160;and#160; Maintaining Capital Intact by A. C. Pigou (1941)
Twelveand#160;and#160;and#160; Maintaining Capital Intact: A Reply (1941)
Index