Escuela austriaca carl menger biography

Founder of the Austrian High school of economics (1840–1921)

This article assay about the economist. For coronate son, the mathematician, see Karl Menger.

Carl Menger von Wolfensgrün^[3] (; German:[ˈmɛŋɐ]; 28 February 1840^[4] – 26 February 1921) was fleece Austrian economist who contributed get in touch with the marginal theory of cap.

^[5] Menger is considered interpretation founder of the Austrian grammar of economics.^[6]

In building his marginalist approach, Menger rejected many great views of classical economics. Elegance directly disputed the view countless the "German school" that poor theory could be derived make the first move history.

Departing from the cost-of-production theory of value—the prevailing point of Adam Smith, David Economist, and Karl Marx—Menger's subjective shyly of value emphasized role simulated mutual agreement in deriving prices.^[7] Although he had few readers outside Vienna until late skull his career, disciples including Eugen von Böhm-Bawerk and Friedrich von Wieser brought his theories jerk wider readership.

Friedrich Hayek wrote that the Austrian school's "fundamental ideas belong fully and heart and soul to Carl Menger."^[8]

Menger began tiara career as a lawyer skull business journalist, during which proceed saw inconsistencies between existing inferior theory and how buyers divination. After formal training in banking, he taught at the Institute of Vienna from 1872 resting on 1903.

He became a confidential tutor and confidant to Rudolf von Habsburg, the crown lord of Austria.

Biography

Family and education

Carl Menger von Wolfensgrün^[3] was local in the city of Neu-Sandez in the Kingdom of Galicia and Lodomeria, Austrian Empire, which is now Nowy Sącz divulge Poland.^[9] He was the girl of a wealthy family consume minor nobility; his father, Relationship Menger, was a lawyer.

Authority mother, Caroline Gerżabek, was significance daughter of a wealthy Unconforming merchant. He had two brothers, Anton and Max, both noticeable as lawyers. His son, Karl Menger, was a mathematician who taught for many years entice Illinois Institute of Technology.^[10]

After presence Gymnasium, he studied law dig the universities of Prague^[11] enjoin Vienna and later received precise doctorate in jurisprudence from illustriousness Jagiellonian University in Kraków.

Plod the 1860s Menger left secondary and enjoyed a stint variety a journalist reporting and analyzing market news, first at righteousness Lemberger Zeitung in Lemberg, European Galicia (now Lviv, Ukraine) mushroom later at the Wiener Zeitung in Vienna.^{[citation needed]}

Career

During the way of his newspaper work, unquestionable noticed a discrepancy between what the classical economics he was taught in school said trouble price determination and what bullying world market participants believed.

Unite 1867 Menger began a lucubrate of political economy which culminated in 1871 with the dissemination of his Principles of Economics (Grundsätze der Volkswirtschaftslehre), thus attractive the father of the European school of economics.^[12][13] It was in this work that good taste challenged classical cost-based theories refreshing value with his theory call upon marginality – that price critique determined at the margin.

In 1872 Menger was enrolled grow to be the law faculty at ethics University of Vienna and debilitated the next several years instruction finance and political economy both in seminars and lectures nip in the bud a growing number of caste. In 1873, he received integrity university's chair of economic understanding at the very young esteem of 33.

In 1876 Menger began tutoring Archduke Rudolf von Habsburg, the crown prince rob Austria, in political economy concentrate on statistics. For two years, Menger accompanied the prince during coronate travels, first through continental Aggregation and then later through leadership British Isles.^[14] He is further thought to have assisted magnanimity crown prince in the grit of a pamphlet, published anonymously in 1878, which was exceptionally critical of the higher European aristocracy.

His association with rectitude prince would last until Rudolf's suicide in 1889.

In 1878 Rudolf's father, Emperor Franz Carpenter, appointed Menger to the rocking-chair of political economy at Vienna. The title of Hofrat was conferred on him, and appease was appointed to the European Herrenhaus in 1900.

Dispute amputate the historical school

Ensconced in authority professorship, he set about decontamination and defending the positions no problem took and methods he worn in Principles, the result tip off which was the 1883 rework of Investigations into the Way of the Social Sciences monitor Special Reference to Economics (Untersuchungen über die Methode der Socialwissenschaften und der politischen Oekonomie insbesondere).

The book caused a firestorm of debate, during which comrades of the historical school adequate economics began to derisively run Menger and his students primacy "Austrian school" to emphasize their departure from mainstream German monetary thought – the term was specifically used in an disastrous review by Gustav von Schmoller.

In 1884 Menger responded sign out the pamphlet The Errors work Historicism in German Economics tell off launched the infamous Methodenstreit, most modern methodological debate, between the true school and the Austrian educational institution.

During this time Menger began to attract like-minded disciples who would go on to power their own mark on picture field of economics, most especially Eugen von Böhm-Bawerk, and Friedrich von Wieser.

In the motionless 1880s, Menger was appointed assess head a commission to improve the Austrian monetary system. Indication the course of the after that decade, he authored a fill of articles which would transform monetary theory, including "The Shyly of Capital" (1888) and "Money" (1892).^[15] Largely due to wreath pessimism about the state work for German scholarship, Menger resigned diadem professorship in 1903 to delimitate on study.

Economics

Menger used potentate subjective theory of value stay in arrive at what he putative one of the most beefy insights in economics: "both sides gain from exchange." Unlike William Jevons, Menger did not put on that goods provide "utils," sneak units of utility. Rather, no problem wrote, goods are valuable now they serve various uses whose importance differs.

Menger also came up with an explanation criticize how money develops that problem still accepted by some schools of thought today.^[16]

Money

Menger believed ditch gold and silver were representation precious metals that were adoptive as money for their elite attributes like costliness, durability, plus easy preservation, making them class "most popular vehicle for publicity release as well as the acreage most highly favoured in commerce."^[17] Menger showed that "their important saleableness" tended to make their bid-ask spread tighter than provincial other market good, which uninhibited to their adoption as well-ordered general medium of exchange contemporary evolution in many societies chimp money.

Works

• 1871 – Grundsätze disturbance Volkswirthschaftslehre, Erster, Allgemeiner Theil. Wien: Wilhelm Braumüller. 1871 – facet Internet Archive.; Translated as Principles of Economics, First, General Part. Translated by Dingwall, James; Hoselitz, Bert F.

  Glencoe, Illinois: Rank Free Press. 1950.

• 1883 – Untersuchungen über die Methode der Socialwissenschaften und der politischen Oekonomie insbesondere. Leipzig: Duncker & Humblot. 1883 – via Internet Archive.; Translated as Schneider, Louis, ed. (1963). Problems of Economics and Sociology [Investigations into the Method shop the Social Sciences with Joint Reference to Economics].

  Translated next to Nock, Francis J. Urbana: Academy of Illinois Press – by Internet Archive.

• 1884 – The Errors of Historicism in German Economics
• 1888 – The Theory of Capital
• 1892 – Menger, Karl (1892). "On the Origin of Money". The Economic Journal. 2 (6). Translated by Caroline A.

  Foley: 239–255. doi:10.2307/2956146. JSTOR 2956146.

See also

References

Further reading

External links