Knut Wicksell - Influence

Knut Wicksell, Influence

Wicksell's influence increased with time. In the first place, his thought was developed by a "school" of Swedish economists. Myrdal in 1927 emphasized the uncer­tainty of the future as a factor in prices — the "anticipation" factor. Lindahl in 1930 applied the Wicksellian technique to the problem of employment, and made further progress toward a "period analysis." These men and their followers did not on the whole accept Wicksell's idea of using interest rates as con­trols. And they moved away from the concept of a timeless equilibrium toward a more truly dynamic concept. But they developed the idea of equilibrium over time periods with emphasis on saving and investment.

In the second place, Wicksell was widely read in central Europe and Italy. He was well known to, and influenced the thought of, Hayek, Keynes, and Hicks. To one living in the middle of the twentieth century, what more need be said!