Professor Mises Transformed the Wicksellian Theory into an Explanation of the Credit Cycle

Here it is only necessary to point out that Professor Mises has improved the Wicksellian theory by an analysis of the different influences which a money rate of interest different from the equilibrium rate exercises on the prices of consumers’ goods on the one hand, and the prices of producers’ goods on the other. In this way, he has succeeded in transforming the Wicksellian theory into an explanation of the credit cycle which is logically satisfactory.

--Friedrich A. Hayek, "Theories of the Influence of Money on Prices," in Prices and Production and Other Works: F.A. Hayek on Money, the Business Cycle, and the Gold Standard, ed. Joseph T. Salerno (Auburn, AL: Ludwig von Mises Institute, 2008), 217.