The Early Austrian School of Economics: Money, Value, Capital

This book explores the thought of the three 'founding members of the Austrian School of economics: Carl Menger, Friedrich von Wieser, and Eugen Böhm-Bawerk, focusing on the transition from Adam Smith's economics and the German School to modern economic theory. It sheds fresh light on their work on money, value, and capital and their influence on the work of Max Weber.

Format: Paperback / softback
Length: 106 pages
Publication date: 29 January 2024
Publisher: Taylor & Francis Ltd

This captivating book delves into the profound and intricate thought of the three esteemed founding members of the Austrian School of economics: Carl Menger, Friedrich von Wieser, and Eugen Böhm-Bawerk. Through a comprehensive exploration of their overlapping and specialized work on money, value, and capital, the author provides a fresh and insightful perspective on the transition from the economics of Adam Smith and the German School to the modern economic theory. Moreover, the book sheds light on the profound influence of the Austrian School on the work of Max Weber, making it an invaluable resource for scholars with a keen interest in the history of ideas, economic theory, political economy, and social theory.

The Austrian School of economics, founded by Carl Menger, Friedrich von Wieser, and Eugen Böhm-Bawerk, emerged as a significant intellectual movement in the late 19th and early 20th centuries. The school's focus on the study of money, value, and capital set it apart from other economic schools of thought, particularly the classical and Keynesian approaches.

Carl Menger, a prominent figure in the Austrian School, is known for his contributions to the theory of marginal utility and the concept of subjective value. He argued that individuals value goods and services based on their perceived utility, rather than their objective price. Menger's insights paved the way for the development of the subjective theory of value, which challenged the classical notion of economic value as determined by supply and demand.

Friedrich von Wieser, another key member of the Austrian School, made significant contributions to the theory of capital and interest. He argued that capital is a productive force that generates economic growth and that interest is the reward for the use of capital. Wieser's ideas influenced the development of the marginal productivity theory of capital, which emphasized the role of investment in economic development.

Eugen Böhm-Bawerk, the third founding member of the Austrian School, is renowned for his contributions to the theory of economic cycles. He developed a comprehensive system of economic analysis that integrated the principles of marginal utility, subjective value, and capital. Böhm-Bawerk's ideas influenced the development of the Austrian School's approach to economic analysis, which emphasized the role of individual choice and market processes in determining economic outcomes.

The Austrian School of economics had a significant impact on the development of modern economic theory. Its emphasis on the role of individual choice and market processes in determining economic outcomes challenged the classical and Keynesian approaches, which emphasized government intervention and central planning. The Austrian School's ideas also influenced the work of other economists, such as Max Weber, who studied the social and political implications of economic behavior.

One of the key ideas of the Austrian School is the concept of human action. According to Austrian economists, human beings are rational actors who make decisions based on their self-interest. They argue that economic behavior is driven by the pursuit of profit and that individuals are motivated by the desire to maximize their utility. This concept of human action has had a profound impact on the study of economic behavior, particularly in the field of behavioral economics.

Another important idea of the Austrian School is the concept of economic cycles
Another important idea of the Austrian School is the concept of economic calculation. Austrian economists argue that economic calculation is a process of discovery and that economic phenomena are not predetermined by natural laws or social conventions. They emphasize the importance of individual freedom and market competition in determining economic outcomes and argue that government intervention can distort the market and lead to unintended consequences.

The Austrian School of economics has faced criticism from some quarters for its emphasis on individualism and market freedom. Critics argue that the school's approach may neglect the role of social welfare and that its emphasis on profit-seeking behavior may lead to unethical behavior. However, Austrian economists argue that their approach is based on the principles of individual freedom and market competition and that it can lead to a more efficient and equitable distribution of resources.

In conclusion, this book provides a comprehensive and insightful exploration of the thought of the three founding members of the Austrian School of economics: Carl Menger, Friedrich von Wieser, and Eugen Böhm-Bawerk. Through a detailed analysis of their overlapping and specialized work on money, value, and capital, the author sheds fresh light on the transition from the economics of Adam Smith and the German School to the modern economic theory. Moreover, the book highlights the profound influence of the Austrian School on the work of Max Weber, making it an invaluable resource for scholars with a keen interest in the history of ideas, economic theory, political economy, and social theory. The Austrian School of economics has had a significant impact on the development of modern economic theory, and its ideas continue to shape our understanding of economic behavior and policy.

Weight: 453g
Dimension: 216 x 138 (mm)
ISBN-13: 9781032045511