Capital and Industrial Fluctuations

“Capital and Industrial Fluctuations.” Econometrica 2 (April 1934): 152–167.


A sympathetic criticism of the kind to which the views of the present author have been subjected by Messrs Hansen and Tout in a recent issue of ECONOMETRICA, offers a welcome  opportunity of clearing up some points upon which I have obviously not yet been sufficiently explicit. The critical comments of the two authors are mostly directed against points where real difficulties present themselves; and while I think I can answer their main objections, it is probable that I can do so more profitably by means of a further systematic development of my thesis than by wasting time on the comparatively unimportant discussion of whether these developments were already implied in my earlier statements or whether the interpretation put upon these can, or cannot, be justified from the admittedly sketchy and incomplete exposition in Prices and Production.”