History of the Austrian School of Economics

By Mises' teachings he has sown the seeds of a regeneration which will bear fruit as soon as men once more begin to prefer theories that are true to theories that are pleasing.

Although Menger is acclaimed primarily for his role in developing what is now known as marginal-utility theory, his writings on methodological individualism, subjective value, and the economic character of goods ("Menger's Law") deserve more attention.

Nevertheless, if we wish to save the capitalist system (or perhaps, to reinstate it), we must reexamine what made this system so successful in the first place, as well as which forces constitute the greatest threats to its existence.

It is this third person who is always kept in the shade, and who, personating that which is not seen, is a necessary element of the problem.

Our talks today were in the Chapter room where Francisco Vitoria taught and the professors of the 15th and 16th centuries gave papers for each other before their public presentations at the university.

"The basic principles of the theory of the competitive market were worked out by the Spanish scholastics of the 16th century..."

"Without the historical act of saving, which is now embodied in capital goods, there would be no economy at all."

Fiat money takes this power out of his hands. The consequence is a greater tendency for capital to be wasted.

"The consumer and his valuations lies at the root of all economic considerations."

Modern monetary theory takes up the thread of the traditional quantity theory as far as it starts from the cognition that changes in the purchasing power of money must be dealt with according to the principles applied to all other market phenomena and that there exists a connection between the changes in the demand for and supply of money on the one hand and those of purchasing power on the other.