Keynesian economics drove Hayek’s school to near extinction by 1941

Evidence

By the end of the de cade only two or three Hayekians were left at the LSE. After the campus relocated to Cambridge during World War II, one of his few remaining students recalled that “most of the younger economists of the time thought that Hayek on employment and output was out of date, was out of fashion. They didn’t take it very seriously.” The magnum opus he published in 1941, The Pure Theory of Capital, went largely ignored. Hayek himself, noting the profession’s turn toward macroeconomics and econometrics after the publication of The General Theory, acknowledged that he became perceived as “oldfashioned, with no sympathy for modern ideas.” — Angus Burgin, The Great Persuasion, 82

Categorization

• XREF: connects to: Keynesian economics conquered academia before shaping public policy — Angus Burgin, The Great Persuasion: Reinventing Free…, 78; Keynesianism triumphed over Hayek partly through its optimism about solving crises — Angus Burgin, The Great Persuasion: Reinventing Free…, 80; Keynes’s General Theory reframed economics around aggregate demand — Angus Burgin, The Great Persuasion: Reinventing Free…, 76

Broader Connections

• Keynesian economics conquered academia before shaping public policy #expands (0.85) — Angus Burgin, The Great Persuasion, 78
• Keynes’s General Theory reframed economics around aggregate demand #expands (0.85) — Angus Burgin, The Great Persuasion, 76
• Keynesianism triumphed over Hayek partly through its optimism about solving crises #expands (0.80) — Angus Burgin, The Great Persuasion, 80