Ralph George Hawtrey
Encyclopedia
Sir Ralph George Hawtrey (22 November 1879 – 21 March 1975) was a British
economist, and a close friend of John Maynard Keynes
.
He studied at Eton
, then Cambridge, where he graduated in 1901 with first-class mathematics honours. He spent the rest of his working life in the study of economics. Between 1904 and 1945 he worked in the UK Treasury. After World War II
he was Price Professor of International Economics in the Royal Institute for International Affairs. He also taught at Harvard as a visiting lecturer.
He took a monetary approach towards the economic ups and downs of industry and commerce, advocating changes in the money supply
through adjustment in the bank rate of interest, foreshadowing the later work of Keynes. In the 1920s, he advocated what was later called the Treasury View
. He also advanced in 1931 the concept that became known as the multiplier
, a coefficient
showing the effect of a change in total national investment on the amount of total national income.
It was his view that the Great Depression
was largely the result of a breakdown of the international gold standard
. He had played a key role in the Genoa Conference
of 1922, which attempted to devise arrangements for a stable return to the gold standard.
Hawtrey was knighted in 1956.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
economist, and a close friend of John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
.
He studied at Eton
Eton College
Eton College, often referred to simply as Eton, is a British independent school for boys aged 13 to 18. It was founded in 1440 by King Henry VI as "The King's College of Our Lady of Eton besides Wyndsor"....
, then Cambridge, where he graduated in 1901 with first-class mathematics honours. He spent the rest of his working life in the study of economics. Between 1904 and 1945 he worked in the UK Treasury. After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
he was Price Professor of International Economics in the Royal Institute for International Affairs. He also taught at Harvard as a visiting lecturer.
He took a monetary approach towards the economic ups and downs of industry and commerce, advocating changes in the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
through adjustment in the bank rate of interest, foreshadowing the later work of Keynes. In the 1920s, he advocated what was later called the Treasury View
Treasury View
In macroeconomics, particularly in the history of economic thought, the Treasury view is the assertion that fiscal policy has no effect on the total amount of economic activity and unemployment, even during times of economic recession. This view was most famously advanced in the 1930s by the staff...
. He also advanced in 1931 the concept that became known as the multiplier
Multiplier (economics)
In economics, the fiscal multiplier is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending In economics, the fiscal...
, a coefficient
Coefficient
In mathematics, a coefficient is a multiplicative factor in some term of an expression ; it is usually a number, but in any case does not involve any variables of the expression...
showing the effect of a change in total national investment on the amount of total national income.
It was his view that the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
was largely the result of a breakdown of the international gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
. He had played a key role in the Genoa Conference
Genoa Conference
The Genoa Conference was held in Genoa, Italy in 1922 from 10 April to 19 May. At this conference, the representatives of 34 countries convened to speak about monetary economics in the wake of World War I...
of 1922, which attempted to devise arrangements for a stable return to the gold standard.
Hawtrey was knighted in 1956.
Main publications
- Good and Bad Trade, 1913.
- Currency and Credit, 1919.
- Monetary Reconstruction, 1922.
- "The Trade Cycle", 1926.
- Trade and Credit, 1928.
- "The monetary theory of the trade cycle", EJ, 1929.
- Trade Depression and the Way Out, 1931
- The Art of Central Banking, 1932.
- The Gold Standard in Theory and Practice, 1933.
- Capital and Employment, 1937.
- A Century of the Bank Rate, 1938.
- "The Trade Cycle and Capital Intensity", EJ, 1940.
- Economic Destiny, 1944.
- "Keynes and Supply Functions", 1956.
- The Pound at Home and Abroad, 1961.