Discusses the origins of the subjective theory of value. As developed by Menger, value theory was in a position to solve problems that the British classical economists could not answer. Included in Epistemological Problems of Economics . Probleme der Wertehre, Part I. Ludwig Mises and Arthur Spiethoff, eds. The reason ties in a general social trend of irrationalism.
Reason is deprecated and romantic illusions prevail.
Included in Epistemological Problems of Economics . It is not an argument against the efficiency of capitalism that 'excess' or unused capital exists. Given the need of producers for flexibility in meeting changes in demand, sometimes the most efficient course will be to hold productive assets in reserve. Included in Epistemological Problems of Economics . Neue Freie Presse .