[Title Page and Table of Contents]: The title page and table of contents for the Festschrift honoring Alfred Amonn's 70th birthday. It lists contributions from prominent economists on topics ranging from subjective value theory and credit creation to monopoly concepts and Keynesian theory. [Foreword to Alfred Amonn]: A detailed foreword by Valentin F. Wagner and Fritz Marbach dedicated to Alfred Amonn. It traces his academic career from the Austrian School to Switzerland, highlighting his contributions to economic methodology, his definition of 'pure theory' as a formal-logical system, and his role as a critical reviewer and teacher who bridged the gap between theoretical and practical economics. [Tabula Gratulatoria]: A comprehensive list of individuals, academic institutions, libraries, and bookstores congratulating Alfred Amonn on his 70th birthday, reflecting his international professional network. [Subjectivism in Socio-Economic Theory: Its Limits and Relativity]: Opening title and author attribution for the first essay in the collection, discussing the limits and relativity of subjectivism in economic theory. [I. Ein Blatt der Erinnerung: Alfred Amonn und die Österreichische Schule]: Otto von Zwiedineck-Südenhorst honors Alfred Amonn on his 70th birthday by reflecting on the history and identity of the Austrian School of Economics. He discusses the complex political and legal status of 'Austria' during the late 19th century and explains how the 'Austrian School' became a global term for marginal utility theory following Carl Menger's work. The author emphasizes the academic tolerance at the University of Vienna, noting that the faculty accepted diverse viewpoints and critiques, including Amonn's own epistemological challenges to marginal utility literature. [II. Vom Wandel des Erkenntnisobjektes zur Prozessauffassung]: This section critiques the limitations of static marginal utility theory and the equilibrium approach. It argues that the economic reality must be understood as a process unfolding over time rather than a system of simultaneous equations. The author highlights Alfred Amonn's contribution in pointing out the flaws of treating the economy like a cosmic system of constant forces. He references Hans Mayer's critique of functional price theories (like those of Cournot and Cassel) for failing to transition from static descriptions to causal-genetic (dynamic) explanations. [III. Funktionale und kausale Theoretisierung]: The author distinguishes between functional (static) and causal (dynamic) theorizing. While functional theory excels at describing price interdependence in equilibrium, it fails to account for the 'instability of general life conditions' mentioned by Marshall. Causal theory, rooted in subjectivism, is necessary to explain the human will and motives behind economic changes. The author argues that while marginal utility theory may be 'materially dead' as a field for further development, its core principle—subjectivism—remains the essential foundation for dynamic economic theory. [IV. Grenzen des Subjektivismus und Relativität]: This section explores the limits of subjectivism and the necessity of objective research paths. It revisits the historical conflict between cost-based (objective) and utility-based (subjective) price theories, noting Amonn's view that value and price are both objective facts and subjectively conditioned phenomena. The author discusses J. H. von Thünen's work as a paradigm for how theoretical assumptions (even unrealistic ones) can yield valid insights. The essay concludes by emphasizing the relativity of economic knowledge, suggesting that human reason and will are not constants, and scientific humility is required when facing the 'unfathomable' aspects of human development. [Anmerkungen zu 'Subjektivismus in der sozialökonomischen Theorie']: Footnotes for Otto von Zwiedineck-Südenhorst's essay. They provide bibliographic references and further elaborations on the Methodentreit (Menger vs. Schmoller), critiques of Cassel's price theory, and the author's own earlier works on dynamic price theory and the concept of equilibrium. [Sozialökonomische und steuerpolitische Anschauungen von Jean-Jacques Rousseau]: Hans Schorer analyzes the economic and fiscal views of Jean-Jacques Rousseau. The essay traces Rousseau's thoughts from his early critiques of science and luxury to his mature political writings like 'The Social Contract' and his constitutional plan for Corsica. Schorer argues that Rousseau's views on taxation are primarily ethical and educational rather than purely economic; he favored proportional (effectively progressive) taxation to prevent extreme inequality and discourage luxury. The text also explores Rousseau's preference for agriculture over trade and his skepticism toward money as a measure of national strength. [Zur Frage der Rechenbarkeit des subjektiven Wertes (Teil I)]: Hans Mayer addresses the long-standing problem of the measurability and calculability of subjective value. He critiques the modern mathematical approach (Pareto, Edgeworth, Hicks) that attempts to eliminate subjective utility in favor of indifference curves and substitution rates. Mayer argues that these mathematical models rely on unrealistic fictions, such as infinite divisibility of goods and limitless substitutability. He asserts that the attempt to build a value-free economic theory is a failure because subjective value remains the 'main axis' of economic processes. [Zur Frage der Rechenbarkeit des subjektiven Wertes (Teil II: Lösungsmöglichkeit)]: In the second part of his essay, Hans Mayer proposes a solution to the calculability problem by introducing the 'time coordinate' into value theory. He argues that economic subjects do not value goods for a single moment but for a 'business period' where needs recur. By viewing marginal utility across a time-based 'boundary layer' (Grenzschichte), value becomes calculable through multiplication (marginal utility x quantity) without requiring cardinal measurability. He extends this logic to production factors, showing how technical substitution and 'production kinship' (Produktionsverwandtschaft) allow for a broad application of economic calculation based on subjective values. [Anmerkungen zu 'Zur Frage der Rechenbarkeit des subjektiven Wertes']: Footnotes for Hans Mayer's essay on subjective value. They include references to J. S. Mill, Pareto's 'Manuel', and critiques of utility measurement attempts by Irving Fisher and Ragnar Frisch. Mayer also comments on Oskar Morgenstern's 'Theory of Games' and the confusion between utility measurability and probability. [Unternehmungswirtschaftliche Grundlagen für volkswirtschaftliche Maßnahmen]: Alfred Walther argues for the distinction between 'Unternehmungswirtschaftslehre' (enterprise economics) and the broader 'Betriebswirtschaftslehre'. He defines the enterprise as an independent entity focused on economic performance for third parties. Walther emphasizes that the enterprise follows its own laws, such as self-financing and long-term strategic planning, which often diverge from simple economic models. He discusses the enterprise's role in competition, price policy, and its relationship with the state (taxation, transport policy). He specifically warns against labor co-determination (Mitbestimmung) and profit-sharing, arguing they conflict with the necessary unity of leadership and the nature of enterprise profit. [Kreditschöpfung und Geldschöpfung]: Eduard Kellenberger examines the controversial concept of credit creation by banks. He distinguishes between different types of credit (trust, granted credit, and utilized loans) and money (cash vs. book money). Using the Swiss banking system as a case study, he argues that what appears to be 'creation out of nothing' is actually the mobilization of existing or new savings. He discusses alternative currency systems like the 'Wirtschaftsring' (Wir) and concludes that true 'money creation' is not about increasing volume but about improving and cheapening payment systems through efficiency and savings in gold reserves. [Beitrag zur Kontroverse um den Monopolbegriff]: Opening of Fritz Marbach's contribution to the controversy surrounding the definition and conceptualization of monopoly in economic theory. [Vorbemerkung: Die Zweckgebundenheit der Marktformentheorie]: Fritz Marbach introduces the controversy surrounding the concept of monopoly, arguing that modern market theory terms are purpose-built thought instruments for explaining price determination but are often unsuitable for other tasks like monopoly legislation. [Monopol und Konkurrenz: Die Grenzfälle der Marktformenlehre]: The author discusses monopoly and competition as ideal types or boundary cases. Citing Samuelson, he notes that real-world firms always contain elements of both, making it necessary to address competition even when focusing on monopoly. [Aspekte der Marktformen: Anzahl der Konkurrenten]: This section examines the first aspect of market classification: the number of competitors. It traces the evolution from simple monopoly definitions to modern theories involving collective monopolies, oligopolies, and atomistic competition, highlighting how the ability to influence price varies with market share and homogeneity. [Aspekte der Marktformen: Homogenität und Substituierbarkeit]: Marbach explores the second aspect: the homogeneity of goods. He argues that the existence of substitutes weakens market power and that the definition of a 'commodity' is subjective, depending on the buyer's psyche and various non-price factors like quality and service. [Monopolistische Konkurrenz und Produktdifferenzierung]: The text discusses the concept of 'monopolistic competition' as an interpolar term between pure monopoly and pure competition. It contrasts the definitions provided by Joan Robinson and Chamberlin with the earlier usage by Pigou, which focused primarily on the number of competitors. [Aspekte der Marktformen: Offenheit oder Geschlossenheit des Marktes]: The third aspect focuses on market accessibility. Marbach identifies three factors that prevent market self-regulation and lead to long-term monopolies: state-sanctioned privileges, control over production factors (basis-monopoly), and 'data inertia' (Verharzung) caused by consumer habits or psychological factors. [Kombinative Betrachtung und Kompetitivitätsmaximum]: Marbach synthesizes the three aspects (number of competitors, product homogeneity, and market openness) into a unified framework. He defines the conditions for perfect competition and perfect monopoly, placing all real-world market forms within the spectrum of monopolistic competition based on their degree of competitiveness. [Konkurrenzgrad und Markteinfluss: Statik vs. Dynamik]: The final section of this chunk distinguishes between static and dynamic views of competition. While static theory sees perfect competition as the most intense, dynamic reality often shows oligopolies engaged in 'cutthroat competition.' Marbach warns against the uncritical application of these theoretical models to economic policy. [Sketch of a New Proposal for the Monopoly Concept]: The authors propose a practical monopoly concept for economic policy, distinguishing between 'basic monopolies' (ownership of means of production) and 'secondary monopolies' (organized power structures like trusts or cartels). They critique Egner's definition for being too broad and contrast their view of 'free competition'—based on performance and legal protection—with the 'perfect competition' model of modern market theory. They introduce the term 'quasi-monopoly' to describe market positions that exert significant influence without meeting the strict linguistic definition of a monopoly. [Notes to the Previous Essay]: A collection of 21 detailed footnotes providing citations and conceptual clarifications for the preceding text. Key discussions include the distinction between fungibility and substitutability, the definition of monopolistic competition according to Chamberlin and Triffin, and the role of unions and cartels in income maintenance. [On the Psychology of National Economic Knowledge]: Eugen Böhler explores the psychological mechanisms that distort economic reasoning, arguing that contradictions in theory stem from psychological factors rather than just logical errors. He critiques Jeremy Bentham's rationalist approach to 'sophisms' and discusses how individual character, social milieu, and biological drives for security lead to dogmatism, 'conceptual realism' (Begriffsrealismus), and the formation of speculative systems. Böhler emphasizes that scientific knowledge is a selective reconstruction of reality influenced by unconscious biases, making objective verification in social sciences extremely difficult. [Notes to the Essay on Psychology of Knowledge]: Footnotes for Eugen Böhler's essay, citing works by Bentham, Steffen, Rignano, and the Chinese philosopher Lü Bü We regarding the sources of prejudice and the psychology of reasoning. [Quantity Theory and Monetary Policy]: Valentin F. Wagner examines the revival of the quantity theory of money in post-war debates. He contrasts the 'primitive' quantity theory (Fisher) with Keynesian income-expenditure theory, arguing that while the quantity theory holds under full employment, its validity is limited by factors like liquidity preference and supply elasticity. Wagner critiques the static assumption that prices only rise near full employment, noting that market expectations and shifting dispositions can cause price increases even during underemployment. He concludes that while the quantity theory provides a necessary core for monetary control, it must be applied with an understanding of dynamic market processes. [On the Concept of Social Policy]: Max Weber (Bern) defines the conceptual boundaries of 'Social Policy' (Sozialpolitik). He traces its evolution from a narrow focus on the 'labor question' to a broader discipline encompassing all social strata, including the self-employed. Weber distinguishes social policy from general economic policy by its focus on the distribution of the social product and the relative standing of social classes. He argues against including specific ideological goals (like 'social justice') in the scientific definition, as these vary by political tradition, and instead defines it as the efforts and measures aimed at altering distribution and social hierarchy. [Rural Craftsmanship in Old Switzerland]: Opening title for a section by Emil J. Walter regarding the application of economic theory to the sociology and history of rural craftsmanship in Switzerland. [Methodology of the Social Sciences]: Emil J. Walter argues for a unified methodological approach between natural and social sciences, classifying both as 'Realwissenschaften'. He rejects the strict dichotomy between nomothetic (law-giving) and idiographic (individualizing) sciences proposed by Windelband and Rickert, asserting that both fields require structural analysis, generalizations, and the possibility of verification or falsification. The author emphasizes that scientific systems must remain 'open' and revisable, treating theoretical models like perfect competition as heuristic tools rather than dogmatic truths. [Sociology and Economic Theory: Cross-Cultural Validity]: This section explores the relationship between pure economic theory (catallactics) and sociology, specifically examining the universal applicability of economic principles. Drawing on the work of D. M. Goodfellow and Bronisław Malinowski, the author argues that economic choices, resource allocation, and value systems exist in primitive cultures (like the Bantu and Trobrianders) just as in modern industrial societies. It highlights Malinowski's classification of social needs and notes that while the 'economic subject' may differ (individual vs. kinship group), the underlying logic of choice under scarcity remains constant. [Sociological Boundary Conditions and Market Systems]: The author discusses how the application of pure economic theory requires the definition of 'sociological boundary conditions' (Randbedingungen). He demonstrates that different social structures—such as private capitalism versus a fully nationalized industry—can both operate on market principles, though they differ in capital accumulation and purchasing power distribution. The section concludes that the choice between economic systems often rests on extra-economic factors like social justice, cultural patterns, and political needs (e.g., military defense), leading into a specific historical case study on rural craftsmanship (Landhandwerk). [III. Das Landhandwerk in der alten Schweiz]: This segment challenges the traditional view of the guild era, which posited a strict division of labor between industrial cities and agricultural countryside. Through extensive statistical analysis of various Swiss cantons (Zurich, Basel, Neuchâtel, Fribourg, etc.) in the 18th century, the authors demonstrate that rural craftsmanship (Landhandwerk) was widespread and essential. They argue that the concentration of all industrial activity in cities would have been economically unfeasible for the rural population due to travel costs and time losses. The text provides detailed occupational breakdowns for numerous districts, showing a diverse range of trades including textile, food, construction, and metalworking existing outside urban centers. [IV. Schlussfolgerungen zum Landhandwerk]: The authors conclude their study on rural craftsmanship by analyzing the political and economic implications of guild constitutions. They argue that while cities attempted to monopolize trades through 'Zunftbann', these policies only succeeded where they aligned with political power and natural economic needs. The segment highlights the difference between urban luxury/export crafts and rural mass-market production. Crucially, it links the guild structure to political history, noting that guilds often spearheaded the Reformation in certain Swiss cities, while in the 17th and 18th centuries, they served to privilege ruling families over rural subjects and residents without full citizenship. [Anmerkungen zum Landhandwerk]: Footnotes and references for the preceding section on rural craftsmanship in Switzerland, including citations for statistical studies and historical documents like the Memorial of Stäfa (1794). [Von der Stabilität zur Flexibilität der Wechselkurse: Eine dogmengeschichtliche Studie]: Alfred Bosshardt provides a comprehensive dogmatic history of the shift from stable to flexible exchange rates. He begins with Irving Fisher's 'compensated dollar' and moves through Keynes's critique of the gold standard, emphasizing the choice between internal price stability and external exchange rate stability. The essay traces the failure of the gold standard restoration in the 1920s and the rise of exchange controls (Devisenzwangswirtschaft) after WWII. Bosshardt discusses various schools of thought, including the Chicago School (Mints) and neoliberal thinkers (Röpke, Amonn), who argue that flexible rates are a necessary prerequisite for restoring currency convertibility and free trade in an unstable political world. He concludes by noting the success of Canada's flexible rate policy as a modern precedent. [Anmerkungen zur Wechselkurspolitik]: Footnotes for Alfred Bosshardt's study on exchange rates, citing key works by Fisher, Keynes, Hawtrey, Cassel, Röpke, and others. [Bemerkungen zum gegenwärtigen Stand der Konjunkturtheorie]: Gottfried Haberler reviews the state of business cycle theory, focusing on the relationship between monetary flows and the real economy. He analyzes the Hicksian model of the trade cycle, which combines the multiplier and the accelerator. Haberler critiques the mechanical application of the acceleration principle, noting its empirical weaknesses (as shown by Kuznets and Tinbergen) but defending its 'mild' version. A significant portion of the essay is dedicated to the problem of price and wage rigidity; Haberler discusses the 'Pigou effect' and argues that while Keynesian models assume rigidity, a truly comprehensive theory must account for relative price shifts and the dangers of cost-push inflation. He suggests that modern theory needs to 'disaggregate' and return to concepts of structural maladjustment. [When is a Problem of Economic Policy Solvable?]: Oskar Morgenstern explores the logical and theoretical limits of economic policy. He argues that a policy problem's solvability depends on the precise formulation of aims and the specific means permitted to achieve them. Drawing parallels to mathematics (Gödel's incompleteness theorem) and history (the Gordian knot), he demonstrates that restricting the 'tools' available often makes theoretically solvable problems practically unsolvable. He notes a modern trend where society restricts policy means for ethical reasons while facing increasingly complex problems due to technology and total warfare. The essay emphasizes that economic policy is inherently more complex than pure theory because it must account for political and psychological constraints that can create logical contradictions. [Betrachtung einiger Konjunkturmechanismen]: Opening of a section by Hans Böhi regarding the mechanisms of the business cycle. [Introduction: Mathematical Business Cycle Models and the Acceleration Principle]: Hans Böhi introduces the development of mathematical business cycle models based on differential equations. He critiques the traditional reliance on the acceleration principle, noting empirical dissatisfaction from Tinbergen and theoretical objections from Kalecki and Klein regarding liquidity and debt. He proposes an additional mechanism based on the structure of production and distribution to explain the intensity of economic fluctuations. [General Description of the Supplementary Mechanisms: Production Lags and Income Periods]: This section analyzes the discrepancy between production time for consumer goods and income payment periods. Drawing on Metzler, the author argues that production expansion leads to increased income before goods reach the market. He discusses the difficulty of defining production periods, the role of inventory, and the lag in consumer response to income changes, citing Canadian statistics by T.M. Brown. The segment concludes by adapting the multiplier model to account for these production lags. [Models I and II: Multiplier Schemes and Inventory Policy]: Böhi presents two mathematical models. Model I shows how production lags slow income growth and create supply deficits. Model II incorporates a passive inventory policy where entrepreneurs attempt to keep stocks constant, leading to endogenous oscillations and wave formations even without the acceleration principle. The author also introduces the 'coefficient of expectations' (influenced by Hicks and Metzler) to explain how entrepreneur sentiment affects the production upswing. [Model III: Market Dynamics and Entrepreneurial Response to Supply Deficits]: Model III explores how entrepreneurs react to supply deficits and market imbalances. Böhi argues that in reality, entrepreneurs do not just follow past sales but over-order due to long delivery times and perceived demand pressure. He presents three sequences (5, 6, and 7) showing how varying degrees of dynamic supply policy—ranging from mixed strategies to purely speculative reactions—impact the intensity of the business cycle, potentially driving the economy far beyond equilibrium levels. [V. Das kombinierte Modell IV]: This section introduces a combined economic model (Model IV) that integrates the multiplier, the acceleration principle, and supplementary mechanisms to explain business cycle dynamics. It details the mathematical relationships between income growth, induced investment, and production planning, specifically accounting for time lags in investment response and production adjustments. [Modell IV: Sequenzen 8 bis 10]: A comparative analysis of three numerical sequences (8, 9, and 10) demonstrating how different combinations of economic mechanisms affect the amplitude and duration of an economic upswing. The author references Metzler's work on inventory cycles to show how stable inventory policies act as an increased acceleration coefficient, driving income levels further above equilibrium than the basic multiplier-accelerator model alone. [Anmerkungen (Wagner and Marbach)]: A comprehensive list of academic references and footnotes for the preceding theoretical section on business cycle mechanisms. It cites key works by prominent economists including Hicks, Samuelson, Tinbergen, Metzler, and Machlup, focusing on trade cycle theory, econometrics, and consumption functions. [Theorie und Praxis in der Verkehrspolitik: I. Beispiele]: Hans Reinhard Meyer discusses the relationship between theory and practice in transport policy. He argues for a holistic view (Interdependenzgesetz) where transport is treated as a unified system within the national economy. He distinguishes between production and transport, defining the latter as part of the circulation sphere, and warns against the 'hypertrophy' or over-dimensioning of transport infrastructure which leads to national economic losses. [Sparsamkeit, Selbsterhaltung und Verkehrsträgervergleich]: This section examines the principles of economy and self-sufficiency in transport. Meyer evaluates the 'self-preservation' (cost-covering) status of various transport modes: the railways (burdened by public service obligations), air and water transport (heavily subsidized), and motor vehicle traffic. He argues that the motor vehicle industry has reached maturity and should achieve full self-sufficiency by covering its own infrastructure costs, which would in turn improve the competitive position of railways. [II. Nähere Begründung: Zur selbsttragenden Verkehrswirtschaft]: Meyer provides a deeper justification for a self-supporting transport economy. He critiques the shift from surplus to deficit-based transport systems, arguing that subsidies threaten public finances and distort international competitiveness. He explores the social and fiscal implications of transport surpluses versus deficits, concluding that while specific subsidies for remote areas may be necessary, the system as a whole should aim for a net-zero balance to ensure fiscal transparency and fairness. [Das Straßenkostenproblem und die Straßenkostenrechnung]: This final section addresses the technical and economic problem of road cost allocation. Meyer argues that current 'fiscal burdens' on motor vehicles are often misunderstood as taxes when they are actually necessary cost-coverage for infrastructure. He outlines different methods for calculating road costs—including the 'user principle' and 'incremental cost' methods—and emphasizes that heavy vehicles (trucks and buses) currently fail to cover their fair share of costs. Achieving full self-sufficiency for road traffic is presented as the key to a liberal, market-oriented transport order. [III. Der Fachmann und die Politik]: This section explores the relationship between economic experts and political decision-makers. The author argues that experts must accept the primacy of politics and the public will, even when decisions deviate from technical rationality. He outlines four reasons for this stance: the different functions of politicians versus specialists, the psychological importance of national self-determination over material wealth, the necessity of patience for long-term economic progress, and the danger that a 'dictatorship of experts' (brain trust) would lead to tyranny and the death of critical discourse. The expert's role is defined as providing clear, understandable information and cost-benefit analyses to the public, rather than acting as a guardian or 'tutor' of the people. [Anmerkungen]: Footnotes discussing the methodology of transportation economics, specifically addressing the 'additional cost calculation' (Zusatzkostenrechnung) versus the 'causality principle' regarding road maintenance costs for motor vehicles. [Nationalökonomie und Soziologie]: Walter Adolf Jöhr examines the historical and methodological relationship between economics and sociology. He discusses various attempts at synthesis, citing thinkers like Marx, Weber, Sombart, and Schumpeter. Jöhr notes that while economists often call for sociological integration, they frequently ignore the work of pure sociologists due to the perceived 'labyrinth' of sociological methods. The segment explores why a true synthesis remains difficult despite the clear need for a broader perspective in economic policy. [Die Forschungsgebiete von Nationalökonomie und Soziologie]: This section explores the relationship and boundary demarcation between economics and sociology. It critiques broad definitions of sociology that position it as a synthetic 'super-science' and instead advocates for viewing it as a sister discipline to economics. The authors discuss various methodological approaches to defining a science—by method, subject matter, or core problem—concluding that disciplines are best defined by the practical and theoretical problems they aim to solve. For economics, these are problems of wealth, welfare, and economic policy; for sociology, they should be specific social-political challenges like the stability of democracy, family preservation, and cultural standards in mass society. The segment argues that a causal-theoretical approach in sociology is essential for it to function as a useful partner to economics in addressing complex societal developments. [Die Eingliederung soziologischer Erkenntnisse in die Nationalökonomie]: The authors detail four specific ways sociological insights can be integrated into economic research: 1) refining the assumptions of economic models (e.g., introducing power motives or solidarity into the model of perfect competition); 2) pushing back the 'data boundaries' to explain previously given factors like technical progress or consumer taste through sociological causes; 3) analyzing the sociological consequences of economic processes (e.g., urbanization's effect on lifestyle); and 4) examining how these social effects influence economic policy and the political will. The section references Schumpeter's theory on the decline of capitalism due to its sociological side-effects and emphasizes that a true synthesis requires both economics adopting sociological elements and sociology adopting economic ones to fully grasp the reality of 'Economy and Society'. [Anmerkungen zu Wirtschaftstheorie und Wirtschaftspolitik]: Footnotes and bibliographic references for the preceding essay on economics and sociology, citing key works by Amonn, von Wiese, Sombart, Weber, and Schumpeter. [Die Bedeutung der Notenbankbilanzgewinne und -verluste bei Änderungen des Wechselkurses]: Hugo Sieber discusses the economic and accounting implications of central bank profits and losses resulting from exchange rate adjustments. He argues that central banks are not private enterprises and their 'profits' from devaluation or 'losses' from revaluation are largely accounting fictions without inherent monetary relevance. The essay critiques the tendency of governments to seize these 'profits' (which causes inflation) or fear 'losses' (which prevents necessary currency appreciation). Sieber suggests that central banks should move away from traditional commercial balance sheets, which treat banknotes as liabilities—a concept he views as obsolete in a modern fiat currency system. He advocates for a more flexible exchange rate policy where accounting results do not dictate monetary decisions. [Neomerkantilismus in der Zahlungsbilanzpolitik: I. Die Tatbestandsaufnahme]: Emil Küng examines the discrepancy between modern international trade theory and actual policy, characterizing the latter as a return to mercantilism. He contrasts the 19th-century optimism regarding self-regulating balance of payments (Hume, Mill) with modern 'balance of payments pessimism.' The section details how theoretical advancements—such as the recognition of bank credit creation, secondary/tertiary liquidity effects, and the income-based transfer mechanism (multiplier effects)—actually suggest stronger self-regulation than classical models, yet policy has moved toward interventionism. [II. Die Ursachen für den modernen Merkantilismus: 1. Häufigkeit und Größenordnung der Störungen]: Küng argues that the shift to neomercantilism is driven by the unprecedented scale of 20th-century economic shocks, including two World Wars and the Great Depression. He explains why market-conforming mechanisms (like flexible exchange rates) are often abandoned during crises to prevent capital flight and 'currency dumping.' The text justifies state intervention (exchange controls) in emergencies as a means of prioritizing national defense and social stability over theoretical equilibrium, noting that the 'tolerance limits' of social bodies often preclude orthodox deflationary adjustments. [II. Die Ursachen: 2. Änderungen in der Währungsverfassung und Geldpolitik]: This section analyzes how the transition from pure gold circulation to credit-based currencies altered the 'rules of the game.' Küng describes how central banks moved from passive gold-standard adherence to active credit policy, often shielded by exchange controls. He introduces the concept of 'inflation of pressure groups,' where political dependence leads central banks to monetize wage and price increases demanded by unions and industry, turning the balance of payments into a 'Procrustean bed' that must adapt to internal monetary expansion. [II. Die Ursachen: 3. Die objektiven Schwierigkeiten der Störungsüberwindung]: Küng explores structural barriers to balance-of-payments adjustment, such as increased protectionism (quotas vs. tariffs) and the 'dollar shortage.' He discusses Jürg Niehans' findings on low price elasticity in US demand and James Meade's theories on wage rigidity. A key argument is that if labor unions maintain real wages through indexation despite devaluation, the adjustment burden shifts to other income groups or fails entirely, leading states to prefer import restrictions as the 'lesser evil.' [II. Die Ursachen: 4. Die Lähmung des subjektiven Anpassungswillens]: The final section discusses the psychological and political paralysis of the will to adjust. Küng uses Meade's examples to show how external balance-of-payments goals frequently conflict with internal goals like full employment or price stability. He concludes that the trauma of mass unemployment in the 1930s led societies to prioritize internal social cohesion over individual consumer freedom, accepting neomercantilist controls as a necessary trade-off for economic security. [Conclusions on Neomercantilism and Balance of Payments Theory]: The concluding section of the essay addresses the gap between neomercantilist practice and theoretical automatic adjustment processes. It acknowledges that modern disturbances, capital flight, and low currency reserves often necessitate administrative interventions like exchange controls. However, it argues that surplus countries must assist deficit countries through mechanisms like the IMF or EPU to avoid a cycle of trade restrictions, and suggests that restoring the interest rate mechanism and international stability is essential for a return to system-conforming adjustments. [Notes to the Essay on Neomercantilism]: Bibliographic references for the preceding essay on neomercantilism and balance of payments, citing works by Nurkse, Lutz, Condliffe, Niehans, Swerling, and Meade. [Development and Status of Keynesian Theory]: Hermann G. Bieri provides an overview of the impact and structure of Keynes's 'General Theory'. He argues that while individual components like the multiplier or liquidity preference existed before, Keynes was the first to provide a closed theory of income determination. The section discusses early criticisms that viewed it merely as a 'theory of depression' and notes how Keynesian thought has since become a standard part of economic theory. [The Formal System of the General Theory]: Bieri formalizes the Keynesian system using four primary equations: the investment function, the savings function, liquidity preference, and the equilibrium condition (I=S). He demonstrates how the Keynesian multiplier is derived from these relationships and critiques the 'special case' where the interest rate is independent of income, which leads to the simplified multiplier formula commonly found in textbooks. [Generalization of the Keynesian System]: This section introduces a more generalized version of the Keynesian system where investment, savings, and liquidity preference all depend on both income and the interest rate. Bieri derives a complex generalized multiplier formula and shows how Keynes's original formula is a specific reduction of this more comprehensive model. [Keynes vs. The Classics: The Pigou Effect and Full Employment]: Bieri compares Keynesian theory with classical economics, focusing on the mechanism of reaching full employment. He discusses the 'Pigou Effect' (or real balance effect), where falling prices increase the real value of cash holdings, potentially shifting the savings function to allow for full employment even when the interest rate is at its lower bound. He notes that while theoretically interesting, this mechanism relies on significant price flexibility and specific quantitative reactions that may not occur in reality. [Economic Policy Implications and Final Assessment]: The final section evaluates the policy implications of Keynesian theory. Bieri distinguishes between 'Keynesians' who dogmatically apply specific assumptions and those who use the Keynesian system to analyze specific circumstances. He concludes that Keynes's greatest contribution was the theory of income determination, which allows for various policy responses—from laissez-faire to public works—depending on the empirical intensity of functional relationships like the interest elasticity of investment. [Notes to the Essay on Keynesian Theory]: Bibliographic references for Bieri's essay on Keynes, citing key works by Pigou, Hicks, Lutz, Samuelson, Klein, Haberler, and Patinkin.
The title page and table of contents for the Festschrift honoring Alfred Amonn's 70th birthday. It lists contributions from prominent economists on topics ranging from subjective value theory and credit creation to monopoly concepts and Keynesian theory.
Read full textA detailed foreword by Valentin F. Wagner and Fritz Marbach dedicated to Alfred Amonn. It traces his academic career from the Austrian School to Switzerland, highlighting his contributions to economic methodology, his definition of 'pure theory' as a formal-logical system, and his role as a critical reviewer and teacher who bridged the gap between theoretical and practical economics.
Read full textA comprehensive list of individuals, academic institutions, libraries, and bookstores congratulating Alfred Amonn on his 70th birthday, reflecting his international professional network.
Read full textOpening title and author attribution for the first essay in the collection, discussing the limits and relativity of subjectivism in economic theory.
Read full textOtto von Zwiedineck-Südenhorst honors Alfred Amonn on his 70th birthday by reflecting on the history and identity of the Austrian School of Economics. He discusses the complex political and legal status of 'Austria' during the late 19th century and explains how the 'Austrian School' became a global term for marginal utility theory following Carl Menger's work. The author emphasizes the academic tolerance at the University of Vienna, noting that the faculty accepted diverse viewpoints and critiques, including Amonn's own epistemological challenges to marginal utility literature.
Read full textThis section critiques the limitations of static marginal utility theory and the equilibrium approach. It argues that the economic reality must be understood as a process unfolding over time rather than a system of simultaneous equations. The author highlights Alfred Amonn's contribution in pointing out the flaws of treating the economy like a cosmic system of constant forces. He references Hans Mayer's critique of functional price theories (like those of Cournot and Cassel) for failing to transition from static descriptions to causal-genetic (dynamic) explanations.
Read full textThe author distinguishes between functional (static) and causal (dynamic) theorizing. While functional theory excels at describing price interdependence in equilibrium, it fails to account for the 'instability of general life conditions' mentioned by Marshall. Causal theory, rooted in subjectivism, is necessary to explain the human will and motives behind economic changes. The author argues that while marginal utility theory may be 'materially dead' as a field for further development, its core principle—subjectivism—remains the essential foundation for dynamic economic theory.
Read full textThis section explores the limits of subjectivism and the necessity of objective research paths. It revisits the historical conflict between cost-based (objective) and utility-based (subjective) price theories, noting Amonn's view that value and price are both objective facts and subjectively conditioned phenomena. The author discusses J. H. von Thünen's work as a paradigm for how theoretical assumptions (even unrealistic ones) can yield valid insights. The essay concludes by emphasizing the relativity of economic knowledge, suggesting that human reason and will are not constants, and scientific humility is required when facing the 'unfathomable' aspects of human development.
Read full textFootnotes for Otto von Zwiedineck-Südenhorst's essay. They provide bibliographic references and further elaborations on the Methodentreit (Menger vs. Schmoller), critiques of Cassel's price theory, and the author's own earlier works on dynamic price theory and the concept of equilibrium.
Read full textHans Schorer analyzes the economic and fiscal views of Jean-Jacques Rousseau. The essay traces Rousseau's thoughts from his early critiques of science and luxury to his mature political writings like 'The Social Contract' and his constitutional plan for Corsica. Schorer argues that Rousseau's views on taxation are primarily ethical and educational rather than purely economic; he favored proportional (effectively progressive) taxation to prevent extreme inequality and discourage luxury. The text also explores Rousseau's preference for agriculture over trade and his skepticism toward money as a measure of national strength.
Read full textHans Mayer addresses the long-standing problem of the measurability and calculability of subjective value. He critiques the modern mathematical approach (Pareto, Edgeworth, Hicks) that attempts to eliminate subjective utility in favor of indifference curves and substitution rates. Mayer argues that these mathematical models rely on unrealistic fictions, such as infinite divisibility of goods and limitless substitutability. He asserts that the attempt to build a value-free economic theory is a failure because subjective value remains the 'main axis' of economic processes.
Read full textIn the second part of his essay, Hans Mayer proposes a solution to the calculability problem by introducing the 'time coordinate' into value theory. He argues that economic subjects do not value goods for a single moment but for a 'business period' where needs recur. By viewing marginal utility across a time-based 'boundary layer' (Grenzschichte), value becomes calculable through multiplication (marginal utility x quantity) without requiring cardinal measurability. He extends this logic to production factors, showing how technical substitution and 'production kinship' (Produktionsverwandtschaft) allow for a broad application of economic calculation based on subjective values.
Read full textFootnotes for Hans Mayer's essay on subjective value. They include references to J. S. Mill, Pareto's 'Manuel', and critiques of utility measurement attempts by Irving Fisher and Ragnar Frisch. Mayer also comments on Oskar Morgenstern's 'Theory of Games' and the confusion between utility measurability and probability.
Read full textAlfred Walther argues for the distinction between 'Unternehmungswirtschaftslehre' (enterprise economics) and the broader 'Betriebswirtschaftslehre'. He defines the enterprise as an independent entity focused on economic performance for third parties. Walther emphasizes that the enterprise follows its own laws, such as self-financing and long-term strategic planning, which often diverge from simple economic models. He discusses the enterprise's role in competition, price policy, and its relationship with the state (taxation, transport policy). He specifically warns against labor co-determination (Mitbestimmung) and profit-sharing, arguing they conflict with the necessary unity of leadership and the nature of enterprise profit.
Read full textEduard Kellenberger examines the controversial concept of credit creation by banks. He distinguishes between different types of credit (trust, granted credit, and utilized loans) and money (cash vs. book money). Using the Swiss banking system as a case study, he argues that what appears to be 'creation out of nothing' is actually the mobilization of existing or new savings. He discusses alternative currency systems like the 'Wirtschaftsring' (Wir) and concludes that true 'money creation' is not about increasing volume but about improving and cheapening payment systems through efficiency and savings in gold reserves.
Read full textOpening of Fritz Marbach's contribution to the controversy surrounding the definition and conceptualization of monopoly in economic theory.
Read full textFritz Marbach introduces the controversy surrounding the concept of monopoly, arguing that modern market theory terms are purpose-built thought instruments for explaining price determination but are often unsuitable for other tasks like monopoly legislation.
Read full textThe author discusses monopoly and competition as ideal types or boundary cases. Citing Samuelson, he notes that real-world firms always contain elements of both, making it necessary to address competition even when focusing on monopoly.
Read full textThis section examines the first aspect of market classification: the number of competitors. It traces the evolution from simple monopoly definitions to modern theories involving collective monopolies, oligopolies, and atomistic competition, highlighting how the ability to influence price varies with market share and homogeneity.
Read full textMarbach explores the second aspect: the homogeneity of goods. He argues that the existence of substitutes weakens market power and that the definition of a 'commodity' is subjective, depending on the buyer's psyche and various non-price factors like quality and service.
Read full textThe text discusses the concept of 'monopolistic competition' as an interpolar term between pure monopoly and pure competition. It contrasts the definitions provided by Joan Robinson and Chamberlin with the earlier usage by Pigou, which focused primarily on the number of competitors.
Read full textThe third aspect focuses on market accessibility. Marbach identifies three factors that prevent market self-regulation and lead to long-term monopolies: state-sanctioned privileges, control over production factors (basis-monopoly), and 'data inertia' (Verharzung) caused by consumer habits or psychological factors.
Read full textMarbach synthesizes the three aspects (number of competitors, product homogeneity, and market openness) into a unified framework. He defines the conditions for perfect competition and perfect monopoly, placing all real-world market forms within the spectrum of monopolistic competition based on their degree of competitiveness.
Read full textThe final section of this chunk distinguishes between static and dynamic views of competition. While static theory sees perfect competition as the most intense, dynamic reality often shows oligopolies engaged in 'cutthroat competition.' Marbach warns against the uncritical application of these theoretical models to economic policy.
Read full textThe authors propose a practical monopoly concept for economic policy, distinguishing between 'basic monopolies' (ownership of means of production) and 'secondary monopolies' (organized power structures like trusts or cartels). They critique Egner's definition for being too broad and contrast their view of 'free competition'—based on performance and legal protection—with the 'perfect competition' model of modern market theory. They introduce the term 'quasi-monopoly' to describe market positions that exert significant influence without meeting the strict linguistic definition of a monopoly.
Read full textA collection of 21 detailed footnotes providing citations and conceptual clarifications for the preceding text. Key discussions include the distinction between fungibility and substitutability, the definition of monopolistic competition according to Chamberlin and Triffin, and the role of unions and cartels in income maintenance.
Read full textEugen Böhler explores the psychological mechanisms that distort economic reasoning, arguing that contradictions in theory stem from psychological factors rather than just logical errors. He critiques Jeremy Bentham's rationalist approach to 'sophisms' and discusses how individual character, social milieu, and biological drives for security lead to dogmatism, 'conceptual realism' (Begriffsrealismus), and the formation of speculative systems. Böhler emphasizes that scientific knowledge is a selective reconstruction of reality influenced by unconscious biases, making objective verification in social sciences extremely difficult.
Read full textFootnotes for Eugen Böhler's essay, citing works by Bentham, Steffen, Rignano, and the Chinese philosopher Lü Bü We regarding the sources of prejudice and the psychology of reasoning.
Read full textValentin F. Wagner examines the revival of the quantity theory of money in post-war debates. He contrasts the 'primitive' quantity theory (Fisher) with Keynesian income-expenditure theory, arguing that while the quantity theory holds under full employment, its validity is limited by factors like liquidity preference and supply elasticity. Wagner critiques the static assumption that prices only rise near full employment, noting that market expectations and shifting dispositions can cause price increases even during underemployment. He concludes that while the quantity theory provides a necessary core for monetary control, it must be applied with an understanding of dynamic market processes.
Read full textMax Weber (Bern) defines the conceptual boundaries of 'Social Policy' (Sozialpolitik). He traces its evolution from a narrow focus on the 'labor question' to a broader discipline encompassing all social strata, including the self-employed. Weber distinguishes social policy from general economic policy by its focus on the distribution of the social product and the relative standing of social classes. He argues against including specific ideological goals (like 'social justice') in the scientific definition, as these vary by political tradition, and instead defines it as the efforts and measures aimed at altering distribution and social hierarchy.
Read full textOpening title for a section by Emil J. Walter regarding the application of economic theory to the sociology and history of rural craftsmanship in Switzerland.
Read full textEmil J. Walter argues for a unified methodological approach between natural and social sciences, classifying both as 'Realwissenschaften'. He rejects the strict dichotomy between nomothetic (law-giving) and idiographic (individualizing) sciences proposed by Windelband and Rickert, asserting that both fields require structural analysis, generalizations, and the possibility of verification or falsification. The author emphasizes that scientific systems must remain 'open' and revisable, treating theoretical models like perfect competition as heuristic tools rather than dogmatic truths.
Read full textThis section explores the relationship between pure economic theory (catallactics) and sociology, specifically examining the universal applicability of economic principles. Drawing on the work of D. M. Goodfellow and Bronisław Malinowski, the author argues that economic choices, resource allocation, and value systems exist in primitive cultures (like the Bantu and Trobrianders) just as in modern industrial societies. It highlights Malinowski's classification of social needs and notes that while the 'economic subject' may differ (individual vs. kinship group), the underlying logic of choice under scarcity remains constant.
Read full textThe author discusses how the application of pure economic theory requires the definition of 'sociological boundary conditions' (Randbedingungen). He demonstrates that different social structures—such as private capitalism versus a fully nationalized industry—can both operate on market principles, though they differ in capital accumulation and purchasing power distribution. The section concludes that the choice between economic systems often rests on extra-economic factors like social justice, cultural patterns, and political needs (e.g., military defense), leading into a specific historical case study on rural craftsmanship (Landhandwerk).
Read full textThis segment challenges the traditional view of the guild era, which posited a strict division of labor between industrial cities and agricultural countryside. Through extensive statistical analysis of various Swiss cantons (Zurich, Basel, Neuchâtel, Fribourg, etc.) in the 18th century, the authors demonstrate that rural craftsmanship (Landhandwerk) was widespread and essential. They argue that the concentration of all industrial activity in cities would have been economically unfeasible for the rural population due to travel costs and time losses. The text provides detailed occupational breakdowns for numerous districts, showing a diverse range of trades including textile, food, construction, and metalworking existing outside urban centers.
Read full textThe authors conclude their study on rural craftsmanship by analyzing the political and economic implications of guild constitutions. They argue that while cities attempted to monopolize trades through 'Zunftbann', these policies only succeeded where they aligned with political power and natural economic needs. The segment highlights the difference between urban luxury/export crafts and rural mass-market production. Crucially, it links the guild structure to political history, noting that guilds often spearheaded the Reformation in certain Swiss cities, while in the 17th and 18th centuries, they served to privilege ruling families over rural subjects and residents without full citizenship.
Read full textFootnotes and references for the preceding section on rural craftsmanship in Switzerland, including citations for statistical studies and historical documents like the Memorial of Stäfa (1794).
Read full textAlfred Bosshardt provides a comprehensive dogmatic history of the shift from stable to flexible exchange rates. He begins with Irving Fisher's 'compensated dollar' and moves through Keynes's critique of the gold standard, emphasizing the choice between internal price stability and external exchange rate stability. The essay traces the failure of the gold standard restoration in the 1920s and the rise of exchange controls (Devisenzwangswirtschaft) after WWII. Bosshardt discusses various schools of thought, including the Chicago School (Mints) and neoliberal thinkers (Röpke, Amonn), who argue that flexible rates are a necessary prerequisite for restoring currency convertibility and free trade in an unstable political world. He concludes by noting the success of Canada's flexible rate policy as a modern precedent.
Read full textFootnotes for Alfred Bosshardt's study on exchange rates, citing key works by Fisher, Keynes, Hawtrey, Cassel, Röpke, and others.
Read full textGottfried Haberler reviews the state of business cycle theory, focusing on the relationship between monetary flows and the real economy. He analyzes the Hicksian model of the trade cycle, which combines the multiplier and the accelerator. Haberler critiques the mechanical application of the acceleration principle, noting its empirical weaknesses (as shown by Kuznets and Tinbergen) but defending its 'mild' version. A significant portion of the essay is dedicated to the problem of price and wage rigidity; Haberler discusses the 'Pigou effect' and argues that while Keynesian models assume rigidity, a truly comprehensive theory must account for relative price shifts and the dangers of cost-push inflation. He suggests that modern theory needs to 'disaggregate' and return to concepts of structural maladjustment.
Read full textOskar Morgenstern explores the logical and theoretical limits of economic policy. He argues that a policy problem's solvability depends on the precise formulation of aims and the specific means permitted to achieve them. Drawing parallels to mathematics (Gödel's incompleteness theorem) and history (the Gordian knot), he demonstrates that restricting the 'tools' available often makes theoretically solvable problems practically unsolvable. He notes a modern trend where society restricts policy means for ethical reasons while facing increasingly complex problems due to technology and total warfare. The essay emphasizes that economic policy is inherently more complex than pure theory because it must account for political and psychological constraints that can create logical contradictions.
Read full textOpening of a section by Hans Böhi regarding the mechanisms of the business cycle.
Read full textHans Böhi introduces the development of mathematical business cycle models based on differential equations. He critiques the traditional reliance on the acceleration principle, noting empirical dissatisfaction from Tinbergen and theoretical objections from Kalecki and Klein regarding liquidity and debt. He proposes an additional mechanism based on the structure of production and distribution to explain the intensity of economic fluctuations.
Read full textThis section analyzes the discrepancy between production time for consumer goods and income payment periods. Drawing on Metzler, the author argues that production expansion leads to increased income before goods reach the market. He discusses the difficulty of defining production periods, the role of inventory, and the lag in consumer response to income changes, citing Canadian statistics by T.M. Brown. The segment concludes by adapting the multiplier model to account for these production lags.
Read full textBöhi presents two mathematical models. Model I shows how production lags slow income growth and create supply deficits. Model II incorporates a passive inventory policy where entrepreneurs attempt to keep stocks constant, leading to endogenous oscillations and wave formations even without the acceleration principle. The author also introduces the 'coefficient of expectations' (influenced by Hicks and Metzler) to explain how entrepreneur sentiment affects the production upswing.
Read full textModel III explores how entrepreneurs react to supply deficits and market imbalances. Böhi argues that in reality, entrepreneurs do not just follow past sales but over-order due to long delivery times and perceived demand pressure. He presents three sequences (5, 6, and 7) showing how varying degrees of dynamic supply policy—ranging from mixed strategies to purely speculative reactions—impact the intensity of the business cycle, potentially driving the economy far beyond equilibrium levels.
Read full textThis section introduces a combined economic model (Model IV) that integrates the multiplier, the acceleration principle, and supplementary mechanisms to explain business cycle dynamics. It details the mathematical relationships between income growth, induced investment, and production planning, specifically accounting for time lags in investment response and production adjustments.
Read full textA comparative analysis of three numerical sequences (8, 9, and 10) demonstrating how different combinations of economic mechanisms affect the amplitude and duration of an economic upswing. The author references Metzler's work on inventory cycles to show how stable inventory policies act as an increased acceleration coefficient, driving income levels further above equilibrium than the basic multiplier-accelerator model alone.
Read full textA comprehensive list of academic references and footnotes for the preceding theoretical section on business cycle mechanisms. It cites key works by prominent economists including Hicks, Samuelson, Tinbergen, Metzler, and Machlup, focusing on trade cycle theory, econometrics, and consumption functions.
Read full textHans Reinhard Meyer discusses the relationship between theory and practice in transport policy. He argues for a holistic view (Interdependenzgesetz) where transport is treated as a unified system within the national economy. He distinguishes between production and transport, defining the latter as part of the circulation sphere, and warns against the 'hypertrophy' or over-dimensioning of transport infrastructure which leads to national economic losses.
Read full textThis section examines the principles of economy and self-sufficiency in transport. Meyer evaluates the 'self-preservation' (cost-covering) status of various transport modes: the railways (burdened by public service obligations), air and water transport (heavily subsidized), and motor vehicle traffic. He argues that the motor vehicle industry has reached maturity and should achieve full self-sufficiency by covering its own infrastructure costs, which would in turn improve the competitive position of railways.
Read full textMeyer provides a deeper justification for a self-supporting transport economy. He critiques the shift from surplus to deficit-based transport systems, arguing that subsidies threaten public finances and distort international competitiveness. He explores the social and fiscal implications of transport surpluses versus deficits, concluding that while specific subsidies for remote areas may be necessary, the system as a whole should aim for a net-zero balance to ensure fiscal transparency and fairness.
Read full textThis final section addresses the technical and economic problem of road cost allocation. Meyer argues that current 'fiscal burdens' on motor vehicles are often misunderstood as taxes when they are actually necessary cost-coverage for infrastructure. He outlines different methods for calculating road costs—including the 'user principle' and 'incremental cost' methods—and emphasizes that heavy vehicles (trucks and buses) currently fail to cover their fair share of costs. Achieving full self-sufficiency for road traffic is presented as the key to a liberal, market-oriented transport order.
Read full textThis section explores the relationship between economic experts and political decision-makers. The author argues that experts must accept the primacy of politics and the public will, even when decisions deviate from technical rationality. He outlines four reasons for this stance: the different functions of politicians versus specialists, the psychological importance of national self-determination over material wealth, the necessity of patience for long-term economic progress, and the danger that a 'dictatorship of experts' (brain trust) would lead to tyranny and the death of critical discourse. The expert's role is defined as providing clear, understandable information and cost-benefit analyses to the public, rather than acting as a guardian or 'tutor' of the people.
Read full textFootnotes discussing the methodology of transportation economics, specifically addressing the 'additional cost calculation' (Zusatzkostenrechnung) versus the 'causality principle' regarding road maintenance costs for motor vehicles.
Read full textWalter Adolf Jöhr examines the historical and methodological relationship between economics and sociology. He discusses various attempts at synthesis, citing thinkers like Marx, Weber, Sombart, and Schumpeter. Jöhr notes that while economists often call for sociological integration, they frequently ignore the work of pure sociologists due to the perceived 'labyrinth' of sociological methods. The segment explores why a true synthesis remains difficult despite the clear need for a broader perspective in economic policy.
Read full textThis section explores the relationship and boundary demarcation between economics and sociology. It critiques broad definitions of sociology that position it as a synthetic 'super-science' and instead advocates for viewing it as a sister discipline to economics. The authors discuss various methodological approaches to defining a science—by method, subject matter, or core problem—concluding that disciplines are best defined by the practical and theoretical problems they aim to solve. For economics, these are problems of wealth, welfare, and economic policy; for sociology, they should be specific social-political challenges like the stability of democracy, family preservation, and cultural standards in mass society. The segment argues that a causal-theoretical approach in sociology is essential for it to function as a useful partner to economics in addressing complex societal developments.
Read full textThe authors detail four specific ways sociological insights can be integrated into economic research: 1) refining the assumptions of economic models (e.g., introducing power motives or solidarity into the model of perfect competition); 2) pushing back the 'data boundaries' to explain previously given factors like technical progress or consumer taste through sociological causes; 3) analyzing the sociological consequences of economic processes (e.g., urbanization's effect on lifestyle); and 4) examining how these social effects influence economic policy and the political will. The section references Schumpeter's theory on the decline of capitalism due to its sociological side-effects and emphasizes that a true synthesis requires both economics adopting sociological elements and sociology adopting economic ones to fully grasp the reality of 'Economy and Society'.
Read full textFootnotes and bibliographic references for the preceding essay on economics and sociology, citing key works by Amonn, von Wiese, Sombart, Weber, and Schumpeter.
Read full textHugo Sieber discusses the economic and accounting implications of central bank profits and losses resulting from exchange rate adjustments. He argues that central banks are not private enterprises and their 'profits' from devaluation or 'losses' from revaluation are largely accounting fictions without inherent monetary relevance. The essay critiques the tendency of governments to seize these 'profits' (which causes inflation) or fear 'losses' (which prevents necessary currency appreciation). Sieber suggests that central banks should move away from traditional commercial balance sheets, which treat banknotes as liabilities—a concept he views as obsolete in a modern fiat currency system. He advocates for a more flexible exchange rate policy where accounting results do not dictate monetary decisions.
Read full textEmil Küng examines the discrepancy between modern international trade theory and actual policy, characterizing the latter as a return to mercantilism. He contrasts the 19th-century optimism regarding self-regulating balance of payments (Hume, Mill) with modern 'balance of payments pessimism.' The section details how theoretical advancements—such as the recognition of bank credit creation, secondary/tertiary liquidity effects, and the income-based transfer mechanism (multiplier effects)—actually suggest stronger self-regulation than classical models, yet policy has moved toward interventionism.
Read full textKüng argues that the shift to neomercantilism is driven by the unprecedented scale of 20th-century economic shocks, including two World Wars and the Great Depression. He explains why market-conforming mechanisms (like flexible exchange rates) are often abandoned during crises to prevent capital flight and 'currency dumping.' The text justifies state intervention (exchange controls) in emergencies as a means of prioritizing national defense and social stability over theoretical equilibrium, noting that the 'tolerance limits' of social bodies often preclude orthodox deflationary adjustments.
Read full textThis section analyzes how the transition from pure gold circulation to credit-based currencies altered the 'rules of the game.' Küng describes how central banks moved from passive gold-standard adherence to active credit policy, often shielded by exchange controls. He introduces the concept of 'inflation of pressure groups,' where political dependence leads central banks to monetize wage and price increases demanded by unions and industry, turning the balance of payments into a 'Procrustean bed' that must adapt to internal monetary expansion.
Read full textKüng explores structural barriers to balance-of-payments adjustment, such as increased protectionism (quotas vs. tariffs) and the 'dollar shortage.' He discusses Jürg Niehans' findings on low price elasticity in US demand and James Meade's theories on wage rigidity. A key argument is that if labor unions maintain real wages through indexation despite devaluation, the adjustment burden shifts to other income groups or fails entirely, leading states to prefer import restrictions as the 'lesser evil.'
Read full textThe final section discusses the psychological and political paralysis of the will to adjust. Küng uses Meade's examples to show how external balance-of-payments goals frequently conflict with internal goals like full employment or price stability. He concludes that the trauma of mass unemployment in the 1930s led societies to prioritize internal social cohesion over individual consumer freedom, accepting neomercantilist controls as a necessary trade-off for economic security.
Read full textThe concluding section of the essay addresses the gap between neomercantilist practice and theoretical automatic adjustment processes. It acknowledges that modern disturbances, capital flight, and low currency reserves often necessitate administrative interventions like exchange controls. However, it argues that surplus countries must assist deficit countries through mechanisms like the IMF or EPU to avoid a cycle of trade restrictions, and suggests that restoring the interest rate mechanism and international stability is essential for a return to system-conforming adjustments.
Read full textBibliographic references for the preceding essay on neomercantilism and balance of payments, citing works by Nurkse, Lutz, Condliffe, Niehans, Swerling, and Meade.
Read full textHermann G. Bieri provides an overview of the impact and structure of Keynes's 'General Theory'. He argues that while individual components like the multiplier or liquidity preference existed before, Keynes was the first to provide a closed theory of income determination. The section discusses early criticisms that viewed it merely as a 'theory of depression' and notes how Keynesian thought has since become a standard part of economic theory.
Read full textBieri formalizes the Keynesian system using four primary equations: the investment function, the savings function, liquidity preference, and the equilibrium condition (I=S). He demonstrates how the Keynesian multiplier is derived from these relationships and critiques the 'special case' where the interest rate is independent of income, which leads to the simplified multiplier formula commonly found in textbooks.
Read full textThis section introduces a more generalized version of the Keynesian system where investment, savings, and liquidity preference all depend on both income and the interest rate. Bieri derives a complex generalized multiplier formula and shows how Keynes's original formula is a specific reduction of this more comprehensive model.
Read full textBieri compares Keynesian theory with classical economics, focusing on the mechanism of reaching full employment. He discusses the 'Pigou Effect' (or real balance effect), where falling prices increase the real value of cash holdings, potentially shifting the savings function to allow for full employment even when the interest rate is at its lower bound. He notes that while theoretically interesting, this mechanism relies on significant price flexibility and specific quantitative reactions that may not occur in reality.
Read full textThe final section evaluates the policy implications of Keynesian theory. Bieri distinguishes between 'Keynesians' who dogmatically apply specific assumptions and those who use the Keynesian system to analyze specific circumstances. He concludes that Keynes's greatest contribution was the theory of income determination, which allows for various policy responses—from laissez-faire to public works—depending on the empirical intensity of functional relationships like the interest elasticity of investment.
Read full textBibliographic references for Bieri's essay on Keynes, citing key works by Pigou, Hicks, Lutz, Samuelson, Klein, Haberler, and Patinkin.
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