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Updated: Aug 20, 2021

Professor at Vienna University from 1913 until he joined the Graduate Institute of International Studies at Geneva in 1934. In 1940 he left Europe for the U.S. and was appointed five years later to a professorial chair at New York University, where he stayed until 1969. His published works include The Theory of Money and Credit (1912), The Free and Prosperous Commonwealth (1927), Geldwertstabilisierung und Konjunkturpolitik (1928), Bureaucracy (1944), Omnipotent Government (1944), Human Action (1949), Theory and History: An Interpretation of Social and Economic Evaluation (1957) and The Ultimate Foundation of Economic Science (1962). Von Mises argued in favour of the price system as the most efficient basis of resource allocation. A planned economy must be wasteful, because it lacks a price system and cannot institute such a system without destroying its political principle. He applied the marginal utility theory of the austrian school to develop a new theory of money, and pointed out that utility could be measured ordinally only and not cardinally. He also outlined a purchasing power parity theory comparable to that of Gustav Cassel. His trade cycle theory explained fluctuations in terms of an expansion of bank credit in the up-turn which caused a fall in the rate of interest and surplus investment with a consequent reversal when the money supply was reduced.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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