p.i Great Economic Thinkers from the Classicals to the Moderns This is the opus magnum of one of the world’s most renowned experts on the history of economic thought, Bertram Schefold It contains commentaries from the series Klassiker der Nationalökonomie (Classics of Economics), which have been translated into English for the first time Schefold’s choices of authors for this series, which he has edited since 1991, and his comments on the various re-edited works, are proof of his highly original and thought-provoking interpretation of the history of economic thought Together with a companion volume, Great Economic Thinkers from Antiquity to the Historical School: Translations from the Series Klassiker der Nationalökonomie, this book is a collection of English translations with introductions by Bertram Schefold The emphasis of this volume is on the theoretical debates, from the theory of value to imperfect completion; from money to the institutional framework of society; and from the history of economic thought to pioneering works in mathematical economics This volume is an important contribution to the history of economic thought, not only because it delivers original and fresh insights about well-known figures, such as Marx, Stackelberg, Sraffa, Samuelson, Tooke, Hilferding, Schmoller, and Chayanov, but also because it deals with ideas and authors who have been forgotten or neglected in previous literature This volume is of great interest to those who study the history of economic thought, economic theory and philosophy, as well as those who enjoyed the author’s previous volume, Great Economic Thinkers from Antiquity to the Historical School Bertram Schefold is Senior Professor at the Department of Economics, Goethe-Universität, Germany He has published more than 40 books and 250 articles on economic theory, history of economic thought, energy policy and general economic policy He edited the series Klassiker der Nationalökonomie p.ii Routledge Studies in the History of Economics For a full list of titles in this series, please visit www.routledge.com/series/SE0341 181 Comparisons in Economic Thought Economic interdependency reconsidered Stavros A Drakopoulos 182 Four Central Theories of the Market Economy Conceptions, evolution, and applications Farhad Rassekh 183 Ricardo and the History of Japanese Economic Thought A selection of Ricardo studies in Japan during the interwar period Edited by Susumu Takenaga 184 The Theory of the Firm An overview of the economic mainstream Paul Walker 185 On Abstract and Historical Hypotheses and on Value-Judgments in Economic Sciences Critical Edition, with an Introduction and an Afterword by Paolo Silvestri Luigi Einaudi Edited by Paolo Silvestri 186 The Origins of Neoliberalism Insights from economics and philosophy Giandomenica Becchio and Giovanni Leghissa 187 The Political Economy of Latin American Independence Edited by Alexandre Mendes Cunha and Carlos Eduardo Suprinyak 188 Jean-Baptiste Say and Political Economy Text by Jean-Baptiste Say Translated and edited by Gilles Jacoud 189 Economists and War A heterodox perspective Edited by Fabrizio Bientinesi and Rosario Patalano 190 Great Economic Thinkers from the Classicals to the Moderns Translations from the series Klassiker der Nationalökonomie Bertram Schefold p.iii Great Economic Thinkers from the Classicals to the Moderns Translations from the Series Klassiker der Nationalökonomie Bertram Schefold p.iv First published 2017 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2017 Bertram Schefold The right of Bertram Schefold to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data A catalog record for this book has been requested ISBN: 978-1-138-11923-9 (hbk) ISBN: 978-1-315-65240-5 (ebk) Typeset in Minion Pro by Swales & Willis Ltd, Exeter, Devon, UK p.v Contents List of tables Preface and acknowledgments Detailed Contents for Great Economic Thinkers from Antiquity to the Historical School Introduction Two schemes for ordering approaches to the history of economic thought Institutionalism and ordoliberalism The development of economic theory since Adam Smith: an ordering according to the theories of value and distribution Classicals John Locke: a philosopher dedicated to economic thought The Pamphlets from 1815: a shining moment for economic theory Sismondi’s Nouveaux Principes d’Economie Politique: classical liberalism, philanthropy, and the experience of history Charles Babbage’s On the Economy of Machinery and Manufactures Karl Marx: the significance of the problem of the theory of the forms of value and the transformation of values into prices for capital Karl Marx: circulation, productivity, and fixed capital Monetary Theory Thomas Tooke’s An Inquiry into the Currency Principle and the theory of distribution Walter Bagehot: political economist and publicist in the Victorian era Rudolf Hilferding and the idea of an organised capitalism Neoclassicals William Stanley Jevons: the path to modern Utilitarianism Francis Ysidro Edgeworth’s Mathematical Psychics Eugen von Böhm-Bawerk: discovery and error in the history of theories of interest Eugen von Böhm-Bawerk’s Positive Theory of Capital Irving Fisher’s The Nature of Capital and Income Irving Fisher’s determination of interest and long-term equilibrium Vilfredo Pareto’s Manual of Political Economy [Manuale di economia politica] Increasing returns, competition, and growth Antoine Augustin Cournot’s An Inquiry into the Mathematical Principles of the Theory of Wealth [Recherches sur les principes mathématiques de la théorie des richesses] Rudolf Auspitz and Richard Lieben: An Inquiry into Price Theory [Untersuchungen über die Theorie des Preises] Institutionalism Gustav von Schmoller as theoretician In between Historical School and modern Institutionalism: J R Commons‘s Institutionalism Johan Åkerman’s The Problem of a Socio-Economic Synthesis [Das Problem der sozialökonomischen Synthese] Alexander W Chayanov’s The Theory of Peasant Economy p.vi Moderns Knut Wicksell’s Interest and Prices [Geldzins und Güterpreise] Heinrich von Stackelberg’s concept of equilibrium: the search for evolutionarily stable market behaviour Paul A Samuelson’s Foundations of Economic Analysis John R Hicks’s Value and Capital Alfred Müller-Armack’s path: from interventionary state to the social market economy Market, policy, and society in Wilhelm Röpke Appendix: The Series Klassiker der Nationalökonomie References Index p.vii Tables 1.1 1.2 4.1 5.1 Approaches to the history of economic thought Development of economic theory since Adam Smith Suggestive typology assigned to Lamprecht Table of duopoly equilibrium p.ix Preface and acknowledgments This book is a companion volume to my Great Economic Thinkers from Antiquity to the Historical School Both document a large research project in the history of economic thought They contain a planned, coherent, and amended selection of my introductions to the commentary volumes of the Klassiker der Nationalökonomie, translated into English While the former book assembled the essays on authors of antiquity, the Middle Ages and Scholasticism, Mercantilism, the Historical School, and Asian and Arabian Classics, the present combines the essays on the Classical School, Monetary Theory, the Neoclassicals, the Institutionalists, and their descendants who are here, for lack of a better unifying term, grouped as the Moderns The former book combined essays that dealt with the formation of economic thought, with the relationship between economic ideas and general history, hence with a relativist and political tradition of economic thought The present book is more narrowly oriented on the positivist history of economic theory, hence on the analytical reconstruction of the theories of schools and individuals We take up part of the explanation provided in the Preface of the previous book, with some omissions and complements: The Klassiker-series was composed of 100 facsimile editions of Classical texts of economics, the facsimile being that of the first edition (in some cases, for texts older than the invention of printing, the facsimile was that of a manuscript) Each text was accompanied by a volume of commentaries, to which I usually had written an introduction The focus is on the continental tradition, in a German perspective, but with a wide temporal and spatial horizon, going from antiquity to the twentieth century, and including not only European, but also Arab and East Asian authors; they were chosen according to criteria which were explained in the Introduction to the previous book, together with the history of the edition of the Klassiker p.x The initiative to have the essays translated came from the late Mark Perlman, who thought that these texts might provide an insight into currents which are alternatives to the Anglo-Saxon tradition A selection had first been made by Volker Caspari; it was edited as ‘ Beiträge zur ökonomischen Dogmengeschichte Ausgewählt und herausgegeben von Volker Caspari ’ (Schefold 2004a) Here, for the second book, additional translations not contained in Caspari’s selection and two essays on Marx first published in German outside the Klassiker-series have been included Thus, the reader can form an opinion on the programme of the Klassiker-series as a whole (the complete list of the series is found in the Appendix) The series, to the extent that it resulted from my choices, but especially the present selection of introductions, reflects my special interest in the modern revival of classical economic thought, which offers a rigorous theory of value but is open with respect to historically changing influences on distribution, demand, and employment Where others have only mentioned the Condorcet, J.-A.-N de C 237 consumer goods 143–7 consumption 120–1, 220 consumption tax 218 contract curve 338 contracts 187–8 Copeland, M.A 299 Copernicus, N 12 corn model 9–10, 30–40, 47, 71–3, 95–6 Corn Pamphlets 9–10, 28–40 p.441 correspondence principle 346–7 Cournot, A.A 14, 49, 55, 177, 185, 247; duopoly 338–40, 340–1, 341–2; Research into the Mathematical Principles of the Theory of Wealth 260–3 craft commodities 86–7 credit 12–13, 133, 154; Hilferding 162–3; Locke 27; Marx 85–96 credit economy 117 Creedy, J 187–8 crises 10–11, 133, 377–8; Marx 93–5; Sismondi 45–7 Croce, B 388 Cromwell, T 22 culture 277–80 currency reform 367–8 Currency School 13, 133; Banking-Currency Controversy 131–2 cycles, economic 89, 92–5, 169, 301–2, 356–8, 376–8 cyclical policy 358, 366, 368 dated commodities 18 declining competition 332 declining rate of profit 5, 11, 31, 35–6, 87–8, 227–8 demand 284–5, 346–7; effective 17, 19, 89; for money 286–7; paradox of 237, 238 demand and supply 74–5, 270; Böhm-Bawerk 74–5, 208–9, 270; of capital 14–15, 349; Hilferding 160; Jevons 182; Schmoller 284–5 Denis, H 47, 263 depreciation 83–5, 111–13, 118–19, 150 depression 147, 174 derived curve 266–7 determinism 360–1 devaluation 225 development 350; capitalist 358–61; combined 312 Difference Engine 53; No 52; No 49, 52 differential equations 237–44 differential rent 9–10, 28–40 Dilthey, W 275–6, 277–9, 280, 281 diminishing returns 33, 35–6, 252, 253, 254 Diogenes 314 disequilibrium 47, 126–7 distribution 5, 197, 206; Chayanov 317; Jevons’s theory of 184–5; ordering development of economic theory according to theories of 8–20; Pareto 234–5; relationship to growth 89–94; Ricardo, price and 30–3, 206; Tooke’s An Inquiry into the Currency Principle and the theory of 131–47 division of labour 53–5, 114 Dmietriev, V.K 69, 189, 315 domestic economy 99–100 domestic production 321–2 Dopsch, A 60 Dorfman, J 294 duopoly 335, 336, 337–42 Düring, E 189 economic control 368 economic cycles 89, 92–5, 169, 301–2, 356–8, 376–8 economic democracy 171 Economic Journal debate 19, 244–60, 262–3, 334 economic stages 59, 279–81, 281–3 economic styles 279, 353–4, 363–5 economic systems 372; Åkerman 301, 304–8; non-capitalist 319–20 economies of scale debate 19, 244–60, 262–3, 334 Edgeworth, F.Y 17–18, 236, 261, 269, 341; Mathematical Psychics 185–8 effective demand 17, 19, 89 Ely, R.T 294 employment 5, 16–20; full 212–13 Engels, F 68, 69, 87, 93, 97–8, 120 Engels, W 150–1 England: Bank Charter Act 152, 154, 155; banking system 147–57; London’s financial market 148, 154 English Civil War 22 entrepreneurial function 92, 128 entrepreneurial profit 91, 195–8 environmental problems 388, 390 Epstein, L.G 214–15 equilibrium: general 17–18, 226–8, 255, 267; intertemporal see intertemporal equilibrium; long-term 232–3, 348–9; Nash 336; Stackelberg’s concept of 332–45; temporary 79, 348–51, 393 equilibrium economics 305, 307 equity capital 165–7 Erhard, L 354, 372, 376 ethics 309 Eucken, W 7, 244, 301, 307, 353, 385; economic systems and economic models 372–3; MüllerArmack’s work compared with 370–1; Stackelberg 333, 343–4 Europe 147 European integration 366–7 p.442 European Union 373; Maastricht Treaty 356, 373, 388 evolutionarily stable market behaviour 332–45 evolutionary economics 1, 303, 350–1 exchange 25, 59–60; Edgeworth 186–8; intertemporal 193, 195, 201, 202–4, 219 exchange value 86, 102, 203 expanded reproduction 122–3 expectations 308 expenditure tax 218 exploitation 66, 103; theory 55, 195, 206–7 falling rate of profit 5, 11, 31, 35–6, 87–8, 227–8 family economy 313–14; peasant family economy 310–22, 384–5, 390–1 fascism 301, 344, 378 Feldman, G.A 122, 310 Fetter, F.A 386 Fetter, F.W 153 feudal system 44–5 fictitious capital 94–5, 163 finance capital 161–70 First World War 173, 200, 236, 287, 327, 368, 378 Fisher, A.G.B 387 Fisher, I 16, 135, 216–33, 263; determination of interest and long-term equilibrium 229–33; The Nature of Capital and Income 216–28 fixed capital 105–13, 143–6; Marx 83–5, 118–19; see also machinery flows, stocks and 220 Flügge, E 294 forms of value, theory of 57–69 founder’s profit 13, 86, 163–4 France, A 42 France 44–5, 147 Frayssé, J 262 free banking system 149–50, 151, 152, 156–7 free trade 169 Freiburg School Frisch, R 302, 303–4 full employment 212–13 full employment interest rate 331, 392 Garegnani, P 212, 349 Gelesnoff, W 315 general equilibrium 17–18, 226–8, 255, 267 Genmei, Empress 61 George, H 221 German Federal Republic 371–2, 376; post-war 367–8, 388 German ordoliberalism 7–8, 371–3; see also Eucken, W., Müller-Armack, A., Röpke, W Germany 147, 318, 333, 389; inter-war 173–5; National Socialism see National Socialism; reunified 116 Gerschenkron, A 310 Gibbs, J.W 217 Gibson’s paradox 135 Giffen’s paradox 237 gift giving 59–60 Glick, M 82 Goethe, J.W von 278 gold 11–12, 95 gold standard 95, 147–8, 257, 378 Gossen, H.H 177, 185, 348 Gothein, E 278 Grampp, W.D 35, 36 gravitational model 75 Great Britain 387, 388; see also England Great Depression 174 group allegiance 309 Grove, W 63 growth: economies of scale debate 244–60; models 122; relationship with distribution 89–94 Grünberg, C 172 Gründergewinn (founder’s profit) 13, 86, 163–4 guided economy 368–70 guilds 86 Hahn, F 347 Hansen, A 346 Harrod, R 126, 331, 352–3 Hayek, F.A von 226, 372 Hennis, W 277 Heuß, E 333 Hicks, J.R 17, 238, 303, 345; Value and Capital 348–53 Hicks, U 351 hierarchy of needs 317 Hildebrand, B 117, 154 Hilferding, R 13, 69, 86, 95, 157–75, 208 historical method 275–81 Historical School 6, 124, 289–90, 381, 382; Marx and 58, 69; relationship to Institutionalism 216, 293–5; Wicksell and 328 p.443 historicism 273, 275–81 Hitler, A 175 Hollander, S 30 household economy 99–100 housework 316 human sciences 275–81 Hunt, E.K 82 Hutchison, T 28 imperfect competition 167–8; Cournot 260, 262–3; economies of scale debate 19, 244–60, 262–3, 334; Stackelberg 332–45 imperialism 161, 170 income: Fisher on capital and 216–28; national 123–4, 261 increasing returns 244–60, 262 independent peasantry 44, 45 India 314 indifference curves 17–18, 236, 237–44 Industrial Revolution 50 inflation 141–7, 288, 388 input-output analysis 124 Institutionalism 2–7, 216; American 6, 216, 290; relationship to the Historical School 216, 293–5; see also Åkerman, J.G., Chayanov, A.W., Commons, J.R., Schmoller, G von integration 237–44 intellectual labour, division of 53–5 interest: Böhm-Bawerk 188–200, 202–5, 209–11, 213; Fisher 219–28; history of theories of 188–200, 202–3 interest rates 217–18; Bagehot 155–6; Fisher’s determination of 229–33; full employment 331, 392; Hilferding 163; Locke 25–8; monetary 225, 230, 330–1, 392; natural 25–6, 135–6, 330–1, 392; neutral 331; own rates of interest 93, 203, 213–14, 226; and profit rate 19, 89–94, 195–8; real 225; Tooke 134–47; Wicksell on prices and 328–32 intermediate goods 18, 108 intertemporal capital theory 200–15 intertemporal equilibrium 18–19, 93–4, 349–50; Böhm-Bawerk 203, 205–6, 212–13, 214; Fisher 225–6, 230–2 intertemporal exchange 193, 195, 201, 202–4, 219 interventionary state 353–71, 373 intuitive theory 124–5 investment 18, 155–6, 356–7, 378–9 IS-LM-Model 349 Italy 147, 154, 301, 387 Japan 61, 314 Jefferson, T 23, 394 Jevons, W.S 14, 177–85, 305 job creation 174–5 joint production 83–5, 110–13, 143, 183 joint-stock companies 164 Kahn, R.F 246, 326 Kaldor, N 218, 249, 333 Kalecki, M 89, 218 Kaufhold, K.H 289 Kautsky, K.J 172, 173, 312 Keynes, J.M 5, 16–17, 19, 96, 97, 217–18, 299, 357; Bagehot 151–2; compared with Böhm-Bawerk 200–1; contribution and influence 300; deflation 212; economies of scale debate 246, 260; Edgeworth 187, 269; Gibson’s paradox 135; Hicks and 349; interest 89, 198, 210; interest rate 150; Jevons 179, 180–1; liquidity preference 210; long-term interest rates 146; natural interest rate 331; Röpke and 375 Knight, F 291 Kondratiev, N 310 Koopmans, T.C 214 Kugelmann, F 158 Kula, W 316 labour: division of 53–5, 114; Jevons 182–3; Marx and the value form theory 62–85, 206–7; negative labour values 84–5 labour theory of value 86–8, 118, 159; Locke 23–5 labourers, protection of 297–8 Lamprecht, K.G 280 land 143–6, 184, 296; peasant economy 317–18 Lange, O 333 legal system 296–7 Leibniz, G.W 52 Lenin, V.I 161, 170, 173, 310, 312 Leontief, V 97, 310 Lerner, A.P 352 liberal socialism 386–7 liberalism 375–6, 381–2 Lieben, R 14, 264–8 linear depreciation 112–13 liquidity preference 210 List, F 382 location theory 317–18 Locke, J 8, 12, 21–8 p.444 logical action 238 London’s financial market 148, 154 long-run cost curves 248 long-term equilibria 232–3, 348–9 Lovasy, G 387 Lovelace, A 53 Luxemburg, R 161, 170, 173 luxury goods 74, 100, 107–8 Maastricht Treaty 356, 373, 388 Mach, E 172 machinery 46–7; Babbage 48–57; see also fixed capital Machlup, F 352 Magna Carta 296 Malinowski, B 279–80 Malinvaud, E 226 Malthus, T.R 29, 33, 34–5, 46 manufacturing 50, 53–7 marginal revenue curve 247 Marginalist Revolution 177 market economy 382–8; social market economy 353–71, 373 market prices market segmentation 255–6 market stability 332–45 Marshall, A 5, 262, 351; Böhm-Bawerk and 190–1, 201; economies of scale debate and 245, 246, 247, 249–50, 251, 259, 334; Jevons 177; normal prices 13 Marx, K 5, 8, 11, 12, 21, 57–125, 157–61, 189, 222, 283, 355; banking system 149–50; BöhmBawerk’s critique of 208–9; circulation of capital 97–8; combined development 312; corn model 10, 39–40; definition of capitalism 98–102; letter to Vera Zasulich 313; materialism 1; metamorphoses of capital 113–18; profit and interest 197, 198; reproduction schemes 98, 122–5; technical progress 56; theory of credit and of crises 85–96; theory of forms of value 57–69; transformation problem 67, 68, 69–85, 206–7; turnover of capital 118–22; use-value and circulation 102–5 mass entertainment 380 mass production 380 mass society 380–8 material culture 280 materialism mathematical economics 185; Cournot 260–3 Mauss, M 60 maximization 346 maximum profit rate 76, 78, 199, 222–4 medium-sized enterprises 384–5 Meillassoux, C 313 Menabrea, L 52 Menger, C 177, 190, 193–4, 273, 275–6, 281, 352 Mercantilism 28, 282, 283 metal coinage 161–2 metallism 60 metamorphoses of capital 113–18 Metzler, L 346 Milgate, M 226, 270 Mill, J 30, 184 Mill, J.S 39, 153, 178, 183, 185, 388 Minsky, H 89 Mitchell, W.C 290–1, 293, 295 modern Neoclassicals 5, 17–19; see also Hicks, J.R., Müller-Armack, A., Röpke, W., Samuelson, P.A., Stackelberg, H von Wicksell, K., Möller, A 174 monetary interest rate 225, 230, 330–1, 392 monetary orthodoxy 148, 154 monetary theory: Bagehot 147–57; Hilferding 157–75; Schmoller 286–8; Tooke 131–47 money 11–13, 20, 60–1, 95; abolition of 95; introduction in Japan 61; Locke 26–8; quantity theory 16, 135, 327, 328–9 money capital 94–5 Monissen, H 217, 228 monopoly 334, 338–9; closed monopolies 343 Mont-Pèlerin Society 366, 376 Montaner, A 294–5 Montesquieu, Baron de 369 Morgenstern, O 352 Morishima, M 85, 348 Mühlpfordt, W 69 Müller, J von 41 Müller, J.H 52 Müller-Armack, A 7, 279, 372, 373, 394; from the interventionary state to the social market economy 353–71 Myrdal, G 249 Napoleonic wars 34–5 Nash equilibrium 336 national income 261; flow of 123–4 national income accounting 94–5 National Socialism (Nazism) 7–8, 301, 365; Müller-Armack 355, 361–3, 368–9, 373; Röpke 375, 386; Stackelberg 333, 362, 392–3 p.445 nationalization 251–2 natural banking system 149, 156 natural interest rate 25–6, 135–6, 330–1, 392 natural price 9, 77–8 necessary goods 74, 100 need satisfaction principle 344–5 needs, hierarchy of 317 negative labour values 84–5 Neoclassical economics 5, 13–16, 124; see also Auspitz, R., Böhm-Bawerk, E von, Cournot, A.A., Edgeworth, F.Y., Fisher, I., Jevons, W.S., Lieben, R., Marshall, A., Pareto, V., Walras, L Neumark, F 375 neutral interest rate 331 New Deal 301, 384 New Zealand 387 Niehans, J 185, 345 Nietzsche, F 281 nominalism 60 non-capitalist economic systems 319–20 normal prices 13–14, 15–16 Norman, G.W 93, 149 obsolescence 111–12 Ohlin, B 325–6 oligopoly 334–7, 343 open market forms 343 optimal values 85 optimization 346 ordinal utility 236 ordoliberalism 7–8, 371–3; see also Eucken, W.,Müller-Armack, A , Röpke, W Oresme, N 60 organic composition of capital 56, 88–9 organised capitalism 170–5, 355, 378 overproduction 183–4 own rates of interest 93, 203, 213–14, 226 Pagano, U 54 pamphlets 9–10, 28–40, 244 panics 155 paper money 95, 133, 134, 162, 287–8 paradoxes 237–8 Pareto, V 17–18, 233–44, 267; indifference curves 237–44; Manual of Political Economy 233–6 partial-analytic thinking 226–7 partial equilibrium analysis 267–8 Pascal, B 52 path dependency 291–2 path dependent/independent integration 239–43 pay-as-you-go pension system 388 peasant family economy: Chayanov 310–22; Röpke 384–5, 390–1 peasant proprietors 44, 45 Peel, R 131, 152 periodic cycle 47 Perrotta, C 364 Petty, W 8, 23–4 Pigou, A.C 245, 249, 251–2, 256 Pivetti, M 132 planned economy 308, 320 Plato 178 Plekhanov, G.V 315 Polanyi, K 297 political approach 1–2, political organisation 283 positive theory of capital 200–15 positivistic approach post-Keynesians 5, 19–20, 330 power 19, 209; concentration of economic power 388–9 precious metals 12, 134, 286–7; see also gold, silver preferences: paradoxes related to 237, 238; time preference 214–15, 229–32 Pribram, K 386 prices: and distribution in Ricardo’s corn model 30–3; market prices 9; normal prices 13–14, 15–16; production prices 70, 105–13; relative prices 31, 186–7, 329; Schmoller’s value and price theory 283–6; Tooke on interest rates and 134–47; transformation of values into prices 67, 68, 69–85, 159–60, 206–7; Wicksell on interest rates and 328–32 prices in labour commanded 75–7, 78, 139, 141 Priebe, H 390 printing press 47 privately emitted bank notes 133, 134 process innovation 101, 104 product innovation 101, 104 production 38–40; and circulation 114–16; and consumption 120–1; domestic 321–2; joint 83–5, 110–13, 143, 183; mass 380; roundabout 202, 204; unity of circulation and 106–13 production costs 37–8, 220–1, 329 production period 31, 108–10; average 199, 204, 222–3; Böhm-Bawerk 211–12; Fisher 222–4 p.446 production prices 70, 105–13 productivity theories of interest 191–2, 195, 202, 221–2 profit rate: falling 5, 11, 31, 35–6, 87–8, 227–8; and interest rate 19, 89–94, 195–8; maximum 76, 78, 199, 222–4 profits: banks’ 164–8; entrepreneurial profit 91, 195–8; founder’s profit 13, 86, 163–4; Tooke and the theory of distribution 136–47 progress 327–8; technical 48–57, 88–9 progressive depreciation 112–13 promoter’s profit 13, 86, 163–4 property rights 23–5, 295–7 protectionism 289 purpose 291–3 quantity theory 16, 135, 327, 328–9 quasi-rents 136–7 quasi-usus fructus 193 Quesnay, F 97 Radbruch, G 174 Rae, J 221 rational theory 124–5 real interest rate 225 reduction to dated quantities of labour 76, 77, 78, 222 regulation 384; of banks 131–2 relative prices 31, 186–7, 329 relative surplus value 66–7, 124–5 relativistic approach 1, 3–4 religion, sociology of 365–6 Remak, R 70 rent 33, 43, 77–8, 143–7; 1815 pamphlets 9–10, 28–40; Jevons 184; prices and interest rates 143–6 reproduction model 37–9 reproduction schemes 98, 122–5 reserves, bank 149–50, 152, 155, 156, 165–6 reswitching 211–13, 224, 233 Ricardo, D 5, 11, 28–9, 68, 71, 87, 265, 365; Bagehot and 152; corn model 9–10, 30–40; distribution 30–3, 206; exchange value 203; interest rate 90, 196; Jevons and 177, 178, 185; rent 9–10, 30–7; rising wages and falling profit rate 15–16; Sismondi and 43, 46; Wicksell and 326–7 Rieter, H 132 Robbins, L 31–2, 245, 258–9 Robertson, D 245, 251–2, 259–60 Robinson, J 57, 263, 303, 331, 332, 342, 357; imperfect competition 244–5, 344–5; and Marx 70–1, 72, 87–8; natural interest rate 392 Rooke, J 33 Roosevelt, F.D 301, 384 Röpke, W 8, 48, 353, 371–91, 394 Roscher, W 188–9, 200, 314 roundabout production 202, 204 Rousseau, J.-J 23 Russia: economics 310–11, 314–15; peasant family economy 310–22 Rüstow, A 48, 353, 372, 375–6 Sahlins, M 313, 321–2 Salin, E 124, 289, 315, 378, 389 Samuelson, P.A 17, 122–3, 226, 252, 351; Foundations of Economic Analysis 345–7 savings 155–6, 356–7, 379 Say’s Law 10 Schmoller, G von 2–6, 273–90, 294–5, 328; economic stages 279–81, 281–3; historical method in economics and historicism in the human sciences 275–81; limits of his theoretical achievements 288–90; theoretical aims 273–5; theory of money 286–8; value and price theory 283–6 Schneider, E 346 Schumpeter, J.A 2, 87, 97, 168, 189, 198, 236, 299, 300, 312, 355; Dilthey 277; economies of scale debate 249–50, 257–8, 260; imperialism 161, 170; interest 209–10; Samuelson and 346; Schmoller 294 Science Museum, London 49 Second World War 201, 333, 367, 368 secondary deflation 378 secondary rules 210–11 segmentation of markets 255–6 seismographs 51–2 Seligman, E.R.A 33 Senior, N 195, 329 sequential analysis 86 serfdom economy 319–20 services 101–2 Shackle, G.L.S 246–7 short-run cost curves 248 Shove, G 246, 256, 260 Shubik, M 261–2 Sidgwick, M 276 silver 12 simple commodity production 87 simple reproduction 122–3 Singer, H.W 386 Sinzheimer, H 170 p.447 Sismondi, J.C.L 10, 41–8, 126–7 situation-related paradoxes 237–8 Skourtos, M 30 slave economy 319, 320 Slutsky, E 352 Smith, A 5, 87, 256, 314; Bagehot 152; Böhm-Bawerk and 196–7; division of labour 54; exchange value 203; falling profit rate 11; interest 198, 203; Marx and 68; prices 9, 31, 77–8 Social Democratic Party (SPD) 172, 173, 174 social market economy 353–71, 373 social security 383–5, 388 socialisation 94 socialism 207–8, 360, 378, 380; Hilferding 171–5; liberal 386–7 society, mass 380–8 socio-economic synthesis 299–310, 359 sociology 306–7; of religion 365–6 Sombart, W 278, 294, 305–6, 362–3 Soviet Union 171, 301; see also Russia specialisation 114 Spiegel, H.W 47, 48 Spiethoff, A 6, 273, 289, 377 spiritual culture 280 spot economy 350 Sraffa, P 19, 57, 58, 96, 126; economies of scale debate 244, 246, 247, 248, 249, 250, 252–6, 259–60, 262, 334; own rates of interest 226; production prices 70, 106–13; Ricardo 28, 30, 32–3; scheme for the unity of production and circulation 106–13; standard commodity 80–1, 106–7, 108, 138; transformation problem 72–7, 80–1, 84 stability 346; market 332–45 Stackelberg, H von 7, 186, 247, 258, 362, 392–3; concept of equilibrium 332–45 Staël, Madame de 41, 42 stages, economic 59, 279–81, 281–3 Stalin, J 171, 310, 312 standard commodity/good 80–1, 106–7, 108, 138–9 standard industry 80 standard system 106 state 382; Hilferding’s organised capitalism 170–5; intervention 47–8, 344–5, 353–71, 373 statistics 181–2 Steedman, I 85 Stigler, G.J 264 Stockholm School 326 stocks, flows and 220 storage costs 117 Storch, H.F von 314 Strasser, G 174–5 Stresemann, G 173, 174 Struve, P.B 315 styles, economic 279, 353–4, 363–5 Suez Canal 147 supply 74–5; and demand see demand and supply; of money 286–7 supply curve 256 surplus value 32, 66–8, 73–4, 85, 206; absolute 125; relative 66–7, 124–5 Switzerland 381, 382, 387, 391 taxation 251–2; consumption tax 218 technical progress: Babbage 48–57; Marx 88–9 temporary equilibria 79, 348–51, 393 Theocharis, R.D 263 Thornton, H 148 Thünen, J.H von 327 time economics 305–6, 307 time preference 214–15, 229–32 Tooke, T 13, 90, 327, 330; An Inquiry into the Currency Principle and the theory of distribution 131–47 Torrens, R 29, 32, 37–40, 96, 126 trade 385; free 169; protectionism 289 trade unions 297–8 transformation of values into prices 67, 68, 69–85, 159–60, 206–7 transition economies 384 transport costs 117 Trotsky, L 173 Trotskyism 171 Tugan-Baranovsky, M 315 Turgot, A.R.J 192 turnover of capital 118–22 ultra-imperialism 173 unemployment 328; caused by technology 46–7 United States (US) 147, 216, 256; New Deal 301, 384 use value 70, 86, 91–2, 100–1, 118; and circulation 102–5 usury 91–2, 99 Utilitarianism: Edgeworth 187–8; Jevons and the path to 177–85 utility: cardinal and ordinal 236; Pareto’s indifference curves 238–43 utilization theory of interest 192–5, 202 value 5, 8–16; exchange value 86, 102, 203; Jevons 182; labour theory of 23–5, 86–8, 118, 159; Marx and the theory of forms of 57–69; ordering of development of economic theory according to theories of 8–20; Schmoller 283–6; transformation of values into prices 67, 68, 69–85, 159–60, 206–7; use value see use value p.448 variable capital 119 Veblen, T 290–1, 293, 294, 299 Velupillai, K 303–4 Versailles Treaty 200, 236 Viner, J 346 visual theory 124–5 von Neumann, J 49, 70, 110, 244, 352 voting paradox 237 wages 15–16, 30–1, 79–80 Wagner, A 132, 315 Walras, L 5, 8, 13, 177, 233, 235, 305, 327; Auspitz and Lieben 265, 267–8; imperfect competition 262; theory of capital formation 14–15; utilization theory 192, 194–5 Warenkunde (commodity knowledge) 86 weak homogeneity of labour 63–4 wealth 219 Weber, M 1, 20, 277, 291, 343, 344; sociology of religion 365–6 welfare state 48, 383–5, 388 West, E 29, 33, 35–7 Wicksell, K 16, 90, 301–2, 341–2, 392; Interest and Prices 325–32; and Tooke 132, 135 will 291, 298–9 Winter, J 264 workable competition 335 World War I 173, 200, 236, 287, 327, 368, 378 World War II 201, 333, 367, 368 Xenophon 103 Young, A 245, 249, 250, 256–7, 260 Zasulich, V 313 ... 190 Great Economic Thinkers from the Classicals to the Moderns Translations from the series Klassiker der Nationalökonomie Bertram Schefold p.iii Great Economic Thinkers from the Classicals to the. .. Contents for Great Economic Thinkers from Antiquity to the Historical School Preface Introduction From the history of economic analysis to a universal history of economic thought Classics of economic. ..p.i Great Economic Thinkers from the Classicals to the Moderns This is the opus magnum of one of the world’s most renowned experts on the history of economic thought, Bertram