Edited by Robert W. Dimand and Harald Hagemann
Chapter 55: Bertil Ohlin
Keynes and Ohlin encountered each other in two famous controversies in the Economic Journal, both under the editorship of Keynes. The first, which took place in 1929, was the debate about the transfer problem in German reparation payments. The second was an exchange in 1937 about anticipations and critique of Keynes’s General Theory by a group of Swedish economists whom Ohlin described as “the Stockholm School”. Both debates ended inconclusively, but came to stimulate further developments in development economics and macroeconomics. A closer look at the relevant articles helps to define the common ground in the two controversies. It corroborates Ohlin’s claim that there was a “parallel development of several essential aspects of theory and policy in Cambridge and Stockholm” during those years of high theory.
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