Resolving the Paradox of Oskar Lange's 1938 Theory of Interest

Roberto Lampa
Written By SCEPA

WORKING PAPER

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This paper investigates Oskar Lange’s 1938 article with the intention of providing a thorough interpretation of this rather obscure work.

We explore in depth Lange’s theory of interest and its relationship with both Keynes’ General Theory (1936) and Hicks’ synthesis (1937), developing two graphical models that show the non-linearity of Lange’s investment function as well as the consequentiality of his equilibrium solution.

SCEPA
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