612. G. Haberler to Harrod , 8 January 1937 [a]
Department of Economics, Harvard #
8 January 1937
I have just finished the first reading of your Trade Cycle book.  I like it very much indeed. There are many points which remind me of my own treatment of the same questions in my forthcoming book which embodies the results of my work in Geneva.  This book went to the press when I left Geneva last September and will be out in a few months. I like e.g. your stressing of the fact that MV changes with the cycle.  I have emphasised that point exactly as you did.  Furthermore the probability or almost certainty of a setback ending an upswing (p. 165) I have explained in a rather similar way as you, (although I would allow for other possibilities too.  ) The interaction of what you call "Relation" and "Multiplier" I have stressed in other words--this is nothing but the Wicksellian process. 1  There are still points of disagreement, but I have the strong feeling that they are essentially of terminological nature. Your insistence [b] that S I belongs to this group of questions.  I am confident that it will be possible to reach an agreement on these things.
With kind regards,
2. G. Haberler, Prosperity and Depression (1937).
3. Harrod, The Trade Cycle ( 1936:8 ), pp. 125-45.
4. Haberler, Prosperity and Depression, 1937, in particular chapter 9, §§ 4 and 8.
5. Haberler, Prosperity and Depression, 1937, pp. 224-25 (chapter 9 § 7, section on "Spread of Deflation").
6. In the 1938 revised edition of his book (Geneva: League of Nations), p. 243n, Haberler stressed that the two concepts are substantially the same.
7. The Trade Cycle ( 1936:8 ), pp. 67-68 and 160-64. Haberler's polemical remark echoes the exchanges between himself and Harrod in 1934 and 1935: see in particular letters 393 , [jump to page] , 394 , [jump to page] , 401 , [jump to page] , and for context note 1 to press item 8 . Haberler's criticism is also expounded in "Mr. Keynes' Theory of the `Multiplier'" (Zeitschrift für Nationalökonomie, 1936, pp. 299-305), an offprint of which was sent to Harrod and is to be found in HP VIII/90.
- a. ALS, one page, in HP IV-395-422.
b. Ms: «insistance».
c. Ms: «nothing added».
1. But I do not want to suggest that you have added nothing [c] to Wicksell! [Haberler's footnote].
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