423. Harrod to G. Haberler , 22 January 1935 [a]
[Replies to 422 , answered by 427 ]
Christ Church, Oxford #
22 January 1935
I am very grateful to you for having made these changes in your article.  I cannot now feel aggrieved in any way. I have written a very short note, not so much defending myself, as summarizing the position, as I now see it.  I hope that the upshot will have carried us some way towards clarification.
I confess I was mystified by the statement of Kaldor. It was all very interesting, but can he really have had it in mind when he wrote his letter?  The ratio of the volume of money to capital values generally is a new concept in this discussion.
I have now a new theory or fragment of theory regarding interest rates in the trade cycle. I am trying it out on one or two groups this term and will send it to you when it reaches the stage of literary expression. As I think I adumbrated, I have had grave doubts about the increase of round-aboutness in a boom, and if my theory is right, my doubts on that score were justified. 
Alas, I find it very difficult to get away to the continent. Wont you be visiting England in the course of your researches?
2. Harrod, "Rejoinder to Drs. Haberler and Bode" ( 1935:1 ).
3. N. Kaldor, "Banking Policy and Stable Prices" (1934); see note 3 to letter 421 for the relevant passage in Kaldor's letter to Haberler of 22 December 1934.
4. There is no evidence that Harrod actually discussed the subject with Haberler; however, he certainly pursued the matter further, as is certified by the surviving correspondence with Richard Kahn (letters 439 and 443 ) and Keynes (letters 442 and 444 ) during March 1935.
- a. ALS, two pages on one leaf, in GH Box 66.
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