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FROM HAYEK TO KEYNES: G.L.S. Shackle and Our Ignorance of the Future

Greg Hill, City of Seattle

Abstract

G.L.S. Shackle stood at the historic crossroads where the economics of Hayek and Keynes collided. Shackle fused these opposing lines of thought in a macroeconomic theory that draws Keynesian conclusions from Austrian premises. In Shackle’s scheme of thought, the power to imagine alternative courses of action releases decision makers from the web of predictable causation. But the continuous stream of spontaneous and unpredictable choices that originate in the subjective and disparate orientations of individual agents denies us the possibility of rational expectations, and therewith the logical coherence of market equilibrium through time.

Suggested Citation

Greg Hill. "FROM HAYEK TO KEYNES: G.L.S. Shackle and Our Ignorance of the Future" Critical Review (2004).
Available at: http://works.bepress.com/greg_hill/5