Prof. Hayek and the Concertina Effect

Kaldor, N. “Prof. Hayek and the Concertina Effect.” In Economica N.S. 9 (1942): 148–176; reprinted in: Kaldor, Essays on Economic Stability and Growth. London: Duckworth, 1960


“It was more than ten years ago that Prof. Hayek first fascinated the academic world of economists by a new theory of industrial fluctuations which in theoretical conception, and perhaps even more in its practical implications, was diametrically opposed to the current trend of monetary thought. The term “fascination”, though perhaps slightly unacademic, aptly describes the effect of the first impact of Prof. Hayek’s ideas on economists trained in the Anglo-Saxon tradition (and the present writer has no wish to conceal that he was among the fascinees) to whom it suggested aspects of the nature of capitalistic production that they were never taught to think of.”