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- , has outlined the theory of fluctuations of industrial activity. Using these

Results as a starting point for own researches of the industrial

Activity, Hayek has explained a business cycle in terms of credit expansion of banks.

Work in this area has brought to it the invitation to give lecture in London

To school of an economic theory and political sciences, and then and to the invitation

To accept chair of an economic theory and statistics it. It, which it and

Has accepted in 1931. Here it has got in rather inspiring and carried away by work

Group to which belonged: Lajonel Robbins (later Lord Robbins), Arnold Plant, I.e. Greg, Denis Robertson, John Hiks and young Abba Lerner.

Hayek has brought with itself unfamiliar (for them) 1967), p. 204, production" have been written on

English, in his Critical Essays in Monetary Theory (Oxford:

Clarendon Press, "The Hayek Story", but it was not English economic it; Sir John Hicks and Hiks tells sights about the first

To Hayek's (1931) English book that At "the Prices and gradually Austrian theory of a business cycle

It became known and was accepted.

But in the following some years good luck has turned away from the Austrian school.

First, the Austrian theory of the capital, a component of the theory of a business cycle,

Has got under attack of Cambridge economist Pera Sraffy born in Italy and

American Frenka Knight, and the theory of a cycle have forgotten because of enthusiasm,

John Mejnarda Keynes who has arisen concerning the General theory. Secondly, since

Movings to London Hayek and prior to the beginning of 1940th years the Austrian

Economists have one after another left Vienna, at first on personal, and then on

To the political reasons so that school as that has terminated existence. In

1934 Mizes has left Vienna at first to Geneva, and then in Nju York, where it

Has continued to work in isolation; Hayek remained economic at Londosky school

Theories till 1950, and then has got over in Committee on social thought in The Chicago university. Other Austrian economists of generation of Hayek

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