SOURCE: “Dr. Hayek on Money and Capital,” in The Economic Journal, Vol. 42, No. 1, March, 1932, pp. 42-53.

In the following review of Hayek's Prices and Production, Sraffa criticizes Hayek for his assumption that money should not be used as a tool for increasing investment.

To deal with the theory of money, from its doctrinal history down to the inevitable practical proposals, touching upon some of the most perplexing parts of the subject, and all this in four lectures, must have been a feat of endurance on the part of the audience as much as of the lecturer. For, however peculiar, and probably unprecedented, their conclusions may be, there is one respect in which the lectures collected in [Prices and Production]¹ fully uphold the tradition which modern writers on money are rapidly establishing, that of unintelligibility. The fault must lie in the subject itself, or in the theories which are...