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Quotation of the Day…

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… is from page 60 of Vol. 9 (Contra Keynes and Cambridge [2]) of Hayek’s Collected Works – and in particular from his 1963 essay entitled “The Economics of the 1930s as Seen from London”; Hayek here explains part of his reason for his failure to review Keynes’s The General Theory upon its publication in 1936 – a failure for which Hayek long felt pangs of regret:

As I saw it, an examination of the validity of The General Theory would have made it necessary to take issue with the whole macrodynamic approach, the treatment of the economic process in terms of aggregates and statistical totals, a theory which was concerned only with price levels and total income streams and in effect took the whole structure of relative prices for granted and provided no tools to explain changes in relative prices or their effects.