#knut wicksell

[posamuelsson]

Knut Wicksell och Karl Popper

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[moneyfyi]

Time To Take Stock Of The Stock Market

Many years ago a smart and experienced investor told me “Markets rise slowly and fall fast.” We have seen that before and are experiencing it again now. Other than the October 1987 and 1929, none have been so sharp as the current version. Time will tell if the current crash is a prelude like 1929, or an aberration like 1987.

Nothing is truly comparable in the stock market

Today we have near…

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[sprachspiele]

Here a few strange footnotes begin. Enrico Barone had discovered marginal productivity theory independently, but his work was published after he had become aware of Wicksteed's achievement (Barone, 1895, 1896), thus his claim to priority was unluckily lost. Barone convinced Léon Walras to incorporate the marginal productivity theory in the third 1896 edition of his Elements (lesson 36) but then Walras affixed a famous ill-spirited note (App. 3) commending Wicksteed's performance yet claiming that the theorem was already implicit in his early work, and thus that it should be he (Walras), and not Wicksteed, that should be given credit for discovering it. This blatantly opportunistic move outraged even Walras's supporters, and he duly withdrew the note in the fourth edition of his book. During this sorry affair, Knut Wicksell (1900) rose to defend of Wicksteed's claim as discoverer of the theory. But in a surprising twist, it turns out that Wicksell had actually discovered it himself in 1893 -- before Wicksteed -- and had just forgotten about it! To add a bizarre finale, it turns out that a Lausanne mathematician, Hermann Amstein, had basically handed Walras the entire product-exhaustion theorem and its proof in 1877, but Walras had not understood the mathematics and consequently ignored it (cf. JaffE 1964).

The Neoclassical Theory of Distribution

[moneyfyi]

What Can Knut Wicksell Tell Us About Interest Rates?

Knut Wicksell had quite a lot to say about how interest rates work. He was born in 1851, died in 1926 and was an economist who influenced both the Austrians Hayek and Von Mises and at the same time Keynes. He is a resource in at least six economic schools…

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