Introduction: The Debate, 1931–71

Shenoy, Sudha R. “Introduction: The Debate, 1931–71.” in F.A. Hayek, A Tiger by the Tail: The Keynesian Legacy of Inflation, Cato 1979.


“The roots of current economic ideas and of those guiding the wages policy lie in the 1930s, in discussion inspired by the publication of the General Theory.  Though Keynes’s  ideas diverged significantly from the theoretical structure of Pigou and Marshall, with which he was most familiar, “Keynesian” ways of thinking had been fairly widespread in Britain and the USA before the General Theory appeared in 1936. Keynes provided a theoretical foundation for these new ways of thinking.  Since the publication of the General Theory there has been an extensive elaboration of the theoretical system outlined in or generally associated with it, together with a further development of an alternative system of concepts called the Classical system.”

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