XIV – Carl Menger, Part 1 – History of Economic Thought; Part 1

Carl Menger was one of the three men who individually developed the subjective theory of value and began the Marginal Revolution.  His major works were Principles of EconomicsThe Errors of Historicism in German Economics, and “On the Origin of Money” in Economic Journal.

The Marginal Revolution was the discovery of the subjective theory of value and the transition from the labor or cost theory of value to such.  There were three men who individually completely developed the subjective theory of value at around the same time: William Stanley Jevons, Carl Menger, and Leon Walras.

Carl Menger engaged in a “battle over method” with Gustav von Schmoller, a member of the German historical school of economics.  The German school held that there were no general economic laws, that everything was too complicated to derive principles, and that everything depended on the specifics of the time.  Menger, on the other hand, held that the laws of cause and effect held true for all sciences, not just the natural ones.

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