Eugen von BÖHer Majesty-BAWERK

1851 (age 63)

Brno, Czech Republic

One of the greatest figures of the Austrian school, who expanded and reworked Menger’s marginal utility theory. His theory of interest, based on the ‘three reasons’ for interest, was his major personal contribution. Other significant influences were Thiinen and Rae, whose ideas on roundabout production he developed as an element of his capital theory. This aroused furious controversy with fellow economists, into which he entered enthusiastically, writing almost as much in defence of the theory as in its original formulation. Even today there is less than total agreement as to the meaning and significance of his theory of capital and interest. Bohm-Bawerk’s considerable polemical skills were further demonstrated by The Close of the Marxian System (1896), which remains one of the most powerful attacks on Marxist economics ever written. In his government service he participated in the introduction of a gold currency. His resignation as Minister of Finance came when military expenditure threatened to unbalance the budget. Professor of Economics, University Innsbruck, 1881-1889. Civil servant, Austrian Ministry of Finance, 1889-1904. Minister of Finance, 1895, 1897, 1900. Professor of Economics, University Vienna, 1904-1914.

Eugen von BÖHer Majesty-BAWERK

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economist

Background

BÖHer Majesty-BAWERK, Eugen von was born in 1851 in Austro-Hungary.

Education

Graduate in Law, University Vienna.

Career

One of the greatest figures of the Austrian school, who expanded and reworked Menger’s marginal utility theory. His theory of interest, based on the ‘three reasons’ for interest, was his major personal contribution. Other significant influences were Thiinen and Rae, whose ideas on roundabout production he developed as an element of his capital theory.

This aroused furious controversy with fellow economists, into which he entered enthusiastically, writing almost as much in defence of the theory as in its original formulation.

Even today there is less than total agreement as to the meaning and significance of his theory of capital and interest. Bohm-Bawerk’s considerable polemical skills were further demonstrated by The Close of the Marxian System (1896), which remains one of the most powerful attacks on Marxist economics ever written.

In his government service he participated in the introduction of a gold currency. His resignation as Minister of Finance came when military expenditure threatened to unbalance the budget.

Professor of Economics, University Innsbruck, 1881-1889.

Civil servant, Austrian Ministry of Finance, 1889-1904. Minister of Finance, 1895, 1897, 1900. Professor of Economics, University Vienna, 1904-1914.

Achievements

He made important contributions to the development of the Austrian School of economics.

He also was the Austrian Minister of Finance intermittently from 1895 to 1904, and also wrote a series of extensive critiques of Marxism.

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