Carl Menger (1840–1921)

This flawed work of economic theory is the best work I've ever read on the subject. Over 130 years since publication, it remains the best introduction to the science. The author carefully builds the foundations for subjectivist and marginalist theory about value, utility, and exchange, delineates a theory of the FORMATION (not DETERMINATION) of prices, and offers an account for the evolution of money. The book's main problem, for modern readers, is that he does not use the terminology that show more has become standard in the discipline. But that's a small complaint. Besides, if one reads and understands Menger's account, the struggle with the discipline's terminology and leading concepts is a necessary education in and of itself, and might as well be done by each student, not pre-digested. It's a good exercise, then, to read the book and then begin the translation and critique of the economics that came later.

Menger's book became the start of a distinct school of economics, the so-called Austrian School. The Austrian economist Ludwig von Mises claimed that this book began his real education, made him "think like an economist." And that was already after Mises had written a respected book in the field!

Menger's book is still important to the school, while the works of Jevons, Walras, and Marshall have been largely superceded. Interesting disjunction, no? show less

One of the great books of economics.

Contains the first references to the Subjective Theory of Value in Economics