634. Harrod to J. M. Keynes , 19 February 1937 [a]

[Replies to 633 , answered by 637 ]

Christ Church, Oxford #

19 February 1937

Dear Maynard

I believe your footnote [1] is right and that the difference between us is whether we assume prices falling or income rising. I believe as a matter of fact that your definition of "amount of capital" and not mine is implicit in my Ch. II sec. 4. But I perceive that my book needs more articulation at that point.

Incidentally this provides an argument of the first order against prices falling in proportion with rising efficiency, which I do not recollect having seen in your works or elsewhere. For if they did, what is destined to be almost the only demand for new saving will be taken from us.

The paragraph in the enclosed [2] about Edgeworth might interest you. The mild and as I thought kindly reference to the London School has drawn a strongly worded protest from Robbins. See See letters 624, 626, and 635.



  1. 1. Refers to the postscript to letter 633 .

    2. The enclosure is not attached to Harrod's letter. However, it refers to "L'Université d'Oxford" (Harrod 1937:5 ), pp. 79-80.

    3. See letters 624 , 626 , and 635 .

    1. a. ALS, two pages on one leaf, in JMK GTE/2/2/78A.

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