Hayek introduced his triangles in his lectures for his book Prices and Production. The first edition was
in 1931 and the second in 1935. He attempted a more general treatment of capital theory in
his 1941 book, The Pure Theory of Capital. I want to claim that Hayek knew that
he could not draw his triangles under these more general assumptions. And that
he knew that capital theory needed more development than he was able to give.
Jack Birner knows this, although I do not know a reference off-hand. I want to say that
Roger Garrison knows this too, that he presents his diagrams of trianlges in his 2001 book,
Time and Money: The Macroeconomics of Capital Structure, mainly
for their heuristic and pedagogical value. He says something like this in the following:
"…The widely recognized
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