John Maynard Keynes and The Royal Swedish Academy

This paper examines John M. Keynes’s relationship with Gustav Cassel and Eli Hecksher and puts together the events related to his being awarded the 1939 Söderström Gold Medal by The Royal Swedish Academy of Sciences. The correspondence between these economists during the interwar years is detailed, with emphasis on their personal approaches to economic theory and history. Cassel’s and Heckscher’s critical reviews of Keynes’s General Theory are outlined as well. Lastly, an account is provided of the grounds for conferring the award on Keynes while also drawing attention to the conflict-laden proceedings within the Academy when the issue was under consideration by the institution. The final remarks ponder why Keynes received the prize despite the controversy among Swedish economists over the General Theory at the time.