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If we want to understand why Hayekian versions of the Austrian business cycle theory (ABCT) fail, the Sraffa-Hayek debate is the place to start. I will start a bibliography here and update it.
The exchange itself began with Sraffa’s (1932a) review of Hayek’sPrices and Production (London, 1931), then Hayek’s (1932) reply, and Sraffa’s (1932b) response.
Lachmann (1994: 154) is an Austrian attempt to answer Sraffa on the multiple natural rates issue, but Murphy (in “Multiple Interest Rates and Austrian Business Cycle Theory”) has essentially admitted defeat on the issue of the existence of an unique natural rate of interest.
Many other Austrians, however, continue to use the unique natural rate concept in discussions of ABCT, and this is one of the major flaws in the theory.
Bellofiore, R. 1998. “Between Wicksell and Hayek: Mises’ Theory of Money and Credit Revisited,” American Journal of Economics and Sociology 57.4: 531–578.
Burger, P. 2003. Sustainable Fiscal Policy and Economic Stability: Theory and Practice, Edward Elgar, Cheltenham, UK.
Caldwell, B. 2004. Hayek’s Challenge: An Intellectual Biography of F.A. Hayek, University of Chicago Press, Chicago and London.
Cottrell, A. 1993. “Hayek’s Early Cycle Theory Re-examined,”Cambridge Journal of Economics 18: 197–212.
Harcourt, G. C. and P. A. Riach. 1997. A “Second Edition” of The General Theory (Vol. 1), Routledge, London.
Hayek, F. A. von, 1931. Prices and Production, G. Routledge & Sons, Ltd, London.
Hayek, F. A. von, 1932. “Money and Capital: A Reply,” Economic Journal 42 (June): 237–249.
Hayek, F. A. von, 1935. Prices and Production (2nd edn), Routledge and Kegan Paul.
Hicks, J. R. and J. C. Gilbert. 1934. Review of Beiträge zur Geldtheorie by F. A. von Hayek, Economica n.s. 1.4: 479–486.
Kyun, K. 1988. Equilibrium Business Cycle Theory in Historical Perspective Cambridge University Press, Cambridge. p. 36ff.
Kurz, H. D. 2000. “Hayek-Keynes-Sraffa Controversy Reconsidered,” in H. D. Kurz (ed.), Critical Essays on Piero Sraffa’s Legacy in Economics, Cambridge University Press, Cambridge. 257-302.
Lachmann, L. M. 1986. “Austrian Economics under Fire: The Hayek-Sraffa Duel in Retrospect,” in W. Grassl and B. Smith (eds.),Austrian Economics: Historical and Philosophical Background, Croom Helm, London. 225–242. [reprinted in Lachmann 1994: 141-158.]
Lachmann, L. M. 1994. Expectations and the Meaning of Institutions: Essays in Economics (ed. by D. Lavoie), Routledge, London. 141-158.
Lawlor, M. S. and Horn, B. 1992. “Notes on the Hayek-Sraffa exchange,” Review of Political Economy 4: 317–340.
Lawlor, M. S. 1994. “The Own-Rates Framework as an Interpretation of the General Theory: A Suggestion for Complicating the Keynesian Theory of Money,” in J. B. Davis (ed.),The State of Interpretation of Keynes, Kluwer Academic, Boston and London. 39–90.
Murphy, Robert P. 2003. Unanticipated Intertemporal Change in Theories of Interest, PhD dissert., Department of Economics, New York University.
Murphy, Robert P. “Multiple Interest Rates and Austrian Business Cycle Theory.”
Myrdal, G. 1965 . Monetary Equilibrium, Augustus M. Kelly, New York.
Milgate, M. 1979. “On the Origin of the Notion of ‘Intertemporal Equilibrium,’” Economica n.s. 46.181: 1–10.
Sraffa, P. 1932a. “Dr. Hayek on Money and Capital,” Economic Journal 42: 42–53.
Sraffa, P. 1932b. “A Rejoinder,” Economic Journal 42 (June): 249–251.
Vaughn, K. I. 1994. Austrian Economics in America: The Migration of a Tradition, Cambridge University Press, Cambridge and New York.