Albert Einstein came to The California Institute of Technology in early 1933 and delivered a speech on the causes of the ongoing economic depression. Soon after that, Irving Fisher sent the German physicist his recent book Booms and Depressions, depicting the crisis as a monetary phenomenon. An...

This paper explores the connections between the theories of the Stockhom School and the economic orthodoxy of the 1930's. First, we reconstitute the classical, Cambridge and Wicksell's conceptions on saving and its relations with investment. Next, we define the unifying principle behind the...