Carl Menger
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Carl Menger von Wolfensgrün | |
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Other notable students | Prince Rudolf |
Influences | |
Contributions | Marginal utility, Subjective theory of value |
Part of Austrian School |
Business and economics portal |
Carl Menger von Wolfensgrün
Biography
Family and education
Carl Menger von Wolfensgrün
After attending
Career
During the course of his newspaper work, he noticed a discrepancy between what the classical economics he was taught in school said about
In 1872 Menger was enrolled into the law faculty at the University of Vienna and spent the next several years teaching finance and political economy both in seminars and lectures to a growing number of students. In 1873, he received the university's chair of economic theory at the very young age of 33.
In 1876 Menger began tutoring Archduke
In 1878 Rudolf's father, Emperor
Dispute with the historical school
Ensconced in his professorship, he set about refining and defending the positions he took and methods he utilized in Principles, the result of which was the 1883 publication of Investigations into the Method of the Social Sciences with Special Reference to Economics (Untersuchungen über die Methode der Socialwissenschaften und der politischen Oekonomie insbesondere). The book caused a firestorm of debate, during which members of the historical school of economics began to derisively call Menger and his students the "Austrian School" to emphasize their departure from mainstream German economic thought – the term was specifically used in an unfavorable review by Gustav von Schmoller.
In 1884 Menger responded with the pamphlet The Errors of Historicism in German Economics and launched the infamous Methodenstreit, or methodological debate, between the Historical School and the Austrian School. During this time Menger began to attract like-minded disciples who would go on to make their own mark on the field of economics, most notably Eugen von Böhm-Bawerk, and Friedrich von Wieser.
In the late 1880s, Menger was appointed to head a commission to reform the Austrian monetary system. Over the course of the next decade, he authored a plethora of articles which would revolutionize
Philosophical influences
This section is written like a personal reflection, personal essay, or argumentative essay that states a Wikipedia editor's personal feelings or presents an original argument about a topic. (November 2022) |
There are different opinions on Menger's philosophical influences. But it is without discussion that there is a rudimentary dispute of Menger with Plato and a very meticulous one with Aristotle, especially with his ethics.
"Plato holds that money is an agreed sign for change and Aristotle says, that money came into being as an agreement, not by nature, but by law."[11]
Also, the influence of Kant is provable. Many authors emphasize also rationalism and idealism, as is represented by Christian Wolff. Looking at the literature, most writers think that Menger represents an essential Aristotelian position. This is surprisingly a position that is contrary to his theory of the subjective value and his individualistic methodological position.
Another entry is the use of deduction or induction. With his price theory can be shown that Menger is nominalistic and, stronger, anti-essentialistic. That is to say that his approach is inductionalistic.
Economics
Menger used his subjective theory of value to arrive at what he considered one of the most powerful insights in economics: "both sides gain from exchange". Unlike William Jevons, Menger did not believe that goods provide "utils," or units of utility. Rather, he wrote, goods are valuable because they serve various uses whose importance differs. Menger also came up with an explanation of how money develops that is still accepted by some schools of thought today.[12]
Money
Menger believed that gold and silver were the precious metals that were adopted as money for their unique attributes like costliness, durability, and easy preservation, making them the "most popular vehicle for hoarding as well as the goods most highly favoured in commerce."[13] Menger showed that "their special saleableness" tended to make their bid-ask spread tighter than any other market good, which led to their adoption as a general medium of exchange and evolution in many societies as money.
Works
- 1871 – Grundsätze der Volkswirthschaftslehre, Erster, Allgemeiner Theil. Wien: Wilhelm Braumüller. 1871 – via Internet Archive.; Translated as Principles of Economics, First, General Part. Translated by Dingwall, James; Hoselitz, Bert F. Glencoe, Illinois: The 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 of the Social Sciences with Special Reference to Economics]. Translated by Nock, Francis J. Urbana: University of Illinois Press – via 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 JSTOR 2956146.
See also
References
- , History of Political Economy, Annual Supplement to vol. 22 (1990), 263–288.
- ^ a b Admin (28 June 2014). "Carl Menger von Wolfensgrün, o. Univ.-Prof. Dr". 650 Plus. Retrieved November 19, 2021.
- ISBN 978-1-85278-489-8. Note: Some sources say 23 February
- ^ "Carl Menger facts, information, pictures | Encyclopedia.com articles about Carl Menger". www.encyclopedia.com. Retrieved June 30, 2017.
- ^ "Carl Menger | Austrian economist". Encyclopædia Britannica. Retrieved June 30, 2017.
- ^ "Remembering Karl Menger". Illinois Institute of Technology. Archived from the original on April 2, 2009. Retrieved March 26, 2009.
- ^ kanopiadmin (August 18, 2014). "Biography of Carl Menger: The Founder of the Austrian School (1840–1921)". Mises Institute. Retrieved June 30, 2017.
- Hayek, F.A. (1978). "The Place of Menger's Grundsätze in the History of Economic Thought". New Studies in Philosophy, Politics, Economics and History of Ideas. London and Chicago: Routledge and University of Chicago Press. pp. 270-282 – via Internet Archive.
- ^ The History of Economic Thought: A Reader
- ^ "On the Origin of Money" (English translation by Caroline A. Foley), Economic Journal, Volume 2 (1892), pp. 239–55.
- OCLC 12082186.
- )
- JSTOR 2956146.
Further reading
- Caldwell, Bruce, ed. (1990). Carl Menger and his legacy in economics. Durham and London: Duke University Press – via Internet Archive.
- Ebeling, Richard M., "Carl Menger and the Sesquicentennial Founding of the Austrian School," American Institute for Economic Research, January 5, 2021
- Ebeling, Richard M., "Carl Menger's Theory of Institutions and Market Processes," American Institute for Economic Research, April 13, 2021
- Hayek, Friedrich A. (1952). "Hayek on Menger". In Spiegel, Henry William (ed.). The Development of Economic Thought: Great Economists in Perspective. New York and London: John Wiley & Sons, Inc.; Chapman & Hall, Limited. pp. 526- 533 – via Internet Archive.
- Hayek, Friedrich A. von (1968). "Menger, Carl". In Sills, David L. (ed.). International Encyclopedia of the Social Sciences. Vol. 10. The Macmillan Company & The Free Press. pp. 124-127 – via Internet Archive.
- Knight, Frank (1950). "Introduction". Principles of Economics, First, General Part. Translated by Dingwall, James; Hoselitz, Bert F. Glencoe, Illinois: The Free Press. pp. 9- 35 – via Internet Archive.
- Schumpeter, Joseph Alois (1951). "Carl Menger (1840 - 1921)". Ten Great Economists: From Marx to Keynes. Translated by Hans W. Singer. New York: Oxford University Press. pp. 80 - 90 – via Internet Archive.
- Senechal, Marjorie; Golland, Louise; Sigmund, Karl (2000). "Exact thought in a demented time: Karl menger and his viennese mathematical colloquium". The Mathematical Intelligencer. 22: 34–45. S2CID 120063990.
- S2CID 154936520.
- Streissler, Erich W. "Menger, Carl, Nationalökonom, * 23.2.1840 Neu-Sandez (Galizien), † 26.2.1921 Wien. (katholisch)" (in German). Deutsche Biographie. Retrieved 29 November 2023.
- OCLC 750831024.
- von Wieser, Friedrich, "Carl Menger: A Biographical Appreciation" [1923], American Institute for Economic Research, February 25, 2019
External links
- "Menger (von Wolfensgrün), Karl (1840-1921), Nationalökonom" (in German). Österreichisches Biographisches Lexikon und Biographische Dokumentation. Retrieved 29 November 2023.
- The Epistemological Import of Carl Menger's Theory of the Origin of Money Ludwig von Mises in Human Action on Menger's Theory of the Origins of Money
- Profile on Carl Menger at the History of Economic Thought Website
- Principles of Economics Archived 2014-12-16 at the Ludwig von Mises Institute.
- Grundsätze der Volkswirtschaftslehre (Principles of Economics)
- Principles of Economics (PDF Spanish)
- On the Origin of Money (English Translation), online version provided by the Monadnock Press
- Carl Menger Papers, 1857–1985, Rubenstein Library, Duke University
- Works by or about Carl Menger at Internet Archive