From Austrian theory of capital to dissent: Nicholas Kaldor, Friedrich A. Hayek and the way to disequilibrium

Purpose In the early 1930s, Nicholas Kaldor could be classified as an Austrian economist. The author reconstructs intertwined paths of and Friedrich A. Hayek to disequilibrium economics through theoretical deficiencies exposed by theory capital its consequences on equilibrium analysis. Design/methodology/approach approaches discussion using a historical reconstruction based published unpublished materials. Findings integration into business cycle Austrians shortcomings – e.g. criticized Piero Sraffa Gunnar Myrdal called attention limitation apparatus analysis in dynamic contexts. This was central element Kaldor’s emancipation 1934 his subsequent conversion John Maynard Keynes’ General Theory Employment, Interest, Money (1936). addition, it pivotal Hayek’s reformulation social coordination problem “Economics Knowledge” (1937). It also had implications for mature developments, such construction post-Keynesian models growth distribution, Cambridge controversy, critique neoclassical economics. Originality/value close encounter between developments during that decade are unexplored secondary literature. attempts construct coherent narrative integrates many elements personas (e.g. reception Knut Wicksell English-speaking world; Sraffa’s Hayek; Myrdal’s Wicksell, Hayek, Keynes; Hayek-Knight-Kaldor debate; Kaldor-Hayek debate, etc.) were not connected until now previous commentators.