Gesammelte Abhandlungen zur ökonomischen Theorie

[Front Matter and Preface]: This segment contains the title page, publication details, and the author's preface to the 1967 collection of economic essays. Mahr discusses the motivation for the volume, noting that many of his previous works appeared in less accessible journals. He references reviews of his textbook 'Volkswirtschaftslehre' by scholars like Theo Suranyi-Unger and S. Sagoroff, and mentions Wilhelm Weber's assessment of his work as a contribution to the history of economic dogma. [Table of Contents]: A comprehensive list of the eighteen essays included in the collection, covering topics such as collective needs, interest theory, marginal utility, monetary stability, exchange rates, and monopoly policy. [Economic and Ethical Behavior]: Mahr explores the relationship between economic rationality and ethical behavior. He critiques the narrow 'homo oeconomicus' model, arguing that modern subjective value theory allows for altruistic goals within economic calculation. He discusses the limits of economic logic when faced with absolute ethical or religious duties and addresses the debate over 'value freedom' (Wertfreiheit) in economics, concluding that while research is often value-bound in its starting points, the scientific derivation itself must remain objective. [On the Doctrine of Collective Needs]: This essay examines the controversial concept of 'collective needs' in financial theory. Mahr reviews historical definitions from Hermann and Sax, critiquing the idea that the state has its own 'soul' or needs independent of individuals. He argues that collective needs are better understood as 'collective goals' determined by those with political power. The extent of state activity is thus seen as a political decision rather than a purely economic necessity, varying between liberal and planned economies. [Present and Future in Consumer Economic Dispositions]: Mahr provides a detailed analysis of how consumers weigh present versus future satisfaction. He critiques Böhm-Bawerk's theory of the systematic undervaluation of the future, arguing instead that the preference for the present is often tied to 'anticipatory joy' (Vorfreude) or the longer utility duration of durable goods. He examines the impact of interest rates on different types of savings (retirement, emergencies, accumulation) and discusses the limits of 'long-term rationality' given the inherent uncertainty of the future and the influence of social prestige and advertising. [The Time Element in the Theory of Productive Interest]: Mahr defends and refines Böhm-Bawerk's focus on the time-consuming nature of production as the basis for interest. He critiques Schumpeter's view that interest disappears in a static state and offers a revised definition of the 'production period' that avoids infinite historical regress. The essay explores how wage levels influence the choice between 'vertical' (time-intensive) and 'horizontal' (scale-intensive) production expansion and argues that interest rates are unlikely to reach zero due to the continuous opportunities for technical progress and capital-intensive rationalization. [The Influence of Interest on Saving and Investment]: Mahr analyzes the relationship between interest rates, savings, and investment. He challenges the classical view that higher interest always leads to more saving, noting that for certain goals (like fixed retirement sums), lower interest might actually necessitate higher savings. He critiques Keynes's liquidity preference theory, arguing that interest is better understood as an 'investment premium' that incentivizes productive capital formation over non-productive hoarding or 'real-asset saving' (Sachsparen) in land and luxury goods. He concludes that a net interest rate of zero is impossible in a market economy. [Remarks on Concept Formation in Capital and Interest Theory]: Mahr clarifies the dual nature of capital as both money and physical goods (Realkapital). He distinguishes between the money market (short-term) and the investment market (long-term), explaining why interest rates on these markets can diverge significantly due to liquidity considerations and the specific 'investment periods' required by different types of production. He reiterates his critique of Keynes, emphasizing that interest serves to direct savings into productive uses rather than just compensating for a lack of liquidity. [The Law of the Marginal Utility Level in the Light of Criticism]: Mahr critiques the 'Law of the Marginal Utility Level' (Gossen's Second Law), which posits that consumers equalize weighted marginal utilities across all goods. Following Hans Mayer, Mahr argues that this law is empirically false because consumers do not increase consumption of all goods (like salt or bread) proportionally as income rises; instead, they shift to higher-quality goods. He attacks the mathematical equilibrium models of Walras and Pareto for relying on these unrealistic psychological assumptions, arguing that such models fail to capture the qualitative shifts in human needs. [Indifference Curves and the Marginal Utility Level]: Mahr continues his critique of mathematical consumer theory, focusing on indifference curves. He argues that the assumption of infinite substitutability between goods (e.g., bread and wine) is a fiction. In reality, there is often an 'optimal' combination that consumers cannot reach due to income constraints, rather than a range of indifferent ones. He highlights the work of Jean Marchal on 'Pavlovian' vs. 'Cartesian' consumers and emphasizes that qualitative changes in consumption are more significant than the quantitative adjustments modeled by indifference analysis. [Monetary Stability and How to Achieve It]: This segment introduces Mahr's 1933 essay on monetary stability, originally published by the University of Chicago. It features an introduction by Harry D. Gideonse discussing the Federal Reserve's experiments with credit control. Mahr argues for the necessity of a stable currency to prevent the social and economic disruptions caused by extreme price fluctuations. He specifically advocates for using a wholesale price index as the target for stabilization policy, rather than a general price index that includes assets and labor. [The Case for Wholesale Price Stabilization]: Mahr argues that monetary stabilization policy should focus exclusively on wholesale prices rather than retail prices or a general index. He contends that wholesale prices are the primary drivers of industrial activity and production decisions, making the producer's interest more sensitive to monetary fluctuations than the consumer's. The segment also notes that wholesale prices are more responsive to changes in monetary supply and easier to calculate as a representative average compared to localized retail prices. [Exclusion of Non-Commodity Items from the Index]: This section details why wages, rents, cost-of-living items, security prices, and real estate values should be excluded from the currency index used for stabilization. Mahr argues that these items often diverge from commodity price trends due to non-monetary factors like labor productivity, changes in quality of life, speculative shifts, or interest rate movements. Including them would force central banks into counterproductive deflationary or inflationary policies that hinder economic progress. [Neutral Money versus Stable Money]: Mahr compares the concept of 'neutral money' (advocated by Hayek) with 'stable money.' Neutral money seeks to keep the money supply constant regardless of changes on the 'commodity side,' allowing prices to fall as productivity increases. Mahr critiques this approach as practically impossible due to the difficulty of measuring the velocity of circulation and theoretically undesirable because it may act as a brake on economic growth by forcing price declines during expansion. [The Impact of Non-Monetary Price Changes]: The author examines whether non-monetary influences on the price level, such as decreasing returns from land or changes in consumer fashion, should be counteracted by monetary policy. He concludes that while minor shifts are negligible, significant events like crop fluctuations and rapid technical progress present serious challenges for a stable money policy, as they can trigger large-scale price movements that are not caused by monetary supply. [Crop Fluctuations and the Stabilization Index]: Mahr analyzes the volatility of agricultural prices and their impact on the wholesale price index. Using historical data from 1890–1930, he demonstrates that crop-driven price spikes could force a central bank into a restrictive monetary policy that harms industry. He proposes two solutions: using a moving average of agricultural prices (7-8 years) in the index, or allowing the central bank small percentage deviations from the stabilization target when fluctuations are driven by the farm sector. [Technical Progress and the 1929 Depression]: This segment investigates why the U.S. experienced a severe depression despite stable wholesale prices in the 1920s. Mahr argues that rapid technical progress lowered production costs, increasing profit margins and inducing a credit-fueled boom even while prices remained steady. He discusses Wilhelm Röpke's view that stable prices in the face of falling costs constitute 'unveiled inflation' and emphasizes the need for better monetary intervention tools to prevent such booms from ending in crashes. [Reforming Monetary Stabilization: Open-Market Operations and Public Works]: Mahr outlines reforms for monetary control, arguing that discount rate adjustments are insufficient during depressions. He advocates for aggressive open-market operations and credit-financed public works to restore mass purchasing power. He addresses the fear of inflation by arguing that a legally mandated stabilization target provides a clear limit to credit expansion, and suggests that 'reflationary' measures are necessary to counteract downward spirals in demand. [The Index Standard and the Gold Standard]: Mahr discusses the compatibility of an index standard with the gold standard. He suggests that while gold can be retained as a 'camouflage' or for international settlements, the index standard is superior because it provides an objective, public criterion for monetary policy. He argues that a managed index standard is actually less prone to abuse than the gold standard, as any deviation (inflation or deflation) is immediately visible in the price index, preventing the 'involuntary aberrations' common in traditional systems. [Grundprobleme der Theorie der wachsenden Wirtschaft: Sparen und Investieren]: Starting a new section in German, Mahr critiques the Keynesian concept of 'equilibrium income' (Gleichgewichtseinkommen) in a growing economy. He argues that the traditional model where savings must equal investment to reach equilibrium is inadequate for 'balanced growth.' In a growing economy, investment must exceed savings from the current period, necessitating credit expansion or new money creation to facilitate the increased flow of goods and income without causing a crisis of demand. [Der Multiplikator in der wachsenden Wirtschaft]: Mahr examines the role of the multiplier in the temporal progression of a growing economy. He links the multiplier effect to the income velocity of money, demonstrating through numerical examples (Fall 1-4) how a continuous stream of investment leads to a predictable increase in national income. He challenges the notion that an 'infinite' multiplier is unrealistic, explaining that it simply represents the permanent maintenance of an income increase over time, provided all income is spent on consumption or reinvestment. [III. Eine besonders wichtige Funktion des Sparens im Wachstumsprozeß]: Mahr analyzes the role of savings in a growing economy, distinguishing between transitions between stationary states and continuous growth. He argues that the necessary ratio of investment to savings depends on the nature of the investment (short-term capacity utilization vs. long-term infrastructure projects). Long-term projects create income and demand before goods are produced, necessitating savings to prevent inflationary price increases. He uses tabular examples to demonstrate how credit-financed investment without savings leads to price hikes, while savings can act as a stabilizing force by neutralizing excess consumer demand. [IV. Die adäquate Darstellung des Entwicklungsganges in einer gleichmäßig wachsenden Wirtschaft]: This section provides mathematical and graphical representations of linear and exponential growth in national income. Mahr defines the components of total investment in an irregularly growing economy as the sum of savings, credit-financed investment, and the use of cash reserves (hoarding/dishoarding). He emphasizes that while hoarding is alien to the ideal type of steady growth, it plays a critical role in cyclical fluctuations, where consumption and investment patterns shift during booms and depressions. [V. Monetäres und reales Volkseinkommen]: Mahr explores the relationship between monetary and real income, focusing on how price levels react to technical progress and cost reductions under different demand elasticities. He critiques the concept of 'neutral money' (associated with Hayek), arguing that keeping the money supply constant during periods of rapid technical rationalization (like the 1920s US) would lead to depression and unemployment. He concludes that a policy of price stability is generally superior for steady growth, though it must contend with the countervailing forces of technical progress (cost-lowering) and monopolistic labor/price policies (cost-raising). [National Money Income and Real Market Product: The Adjustment of Money Income to Market Product]: Mahr examines the coordination between monetary national income and the real net market product. He argues that disturbances in a market economy often arise from the lag between entrepreneurial costs and consumer receipts, exacerbated by bank credit fluctuations. The text critiques the concept of 'neutral money' and the policy of stabilizing purchasing power, particularly in the context of the 1929 Great Depression. Mahr contends that the 1929 crash was caused by stock speculation and installment debt rather than stable price levels. He concludes that a policy oriented toward stable product prices is superior to a cost-oriented policy because it allows technological progress to translate into non-inflationary profits and economic growth without causing widespread unemployment or depressive effects in other sectors. [Multiplikatorprinzip und Einkommenskreislauf]: Mahr discusses the deficiencies of the prevailing multiplier theory, specifically its neglect of the time factor. He defines the multiplier as the coefficient expressing the annual increase in national income resulting from an increase in the money supply (marginal circuit velocity). He distinguishes between short-term bank credits and long-term investment financing, noting that only the latter provides a lasting increase in the monetary income stream. The text emphasizes that the multiplier's effectiveness is often dampened by 'leakage' through hoarding, particularly in depressed economies with low bank liquidity. [Zur Theorie der Wechselkurse]: A comprehensive treatise on exchange rate theory. Mahr critiques the classical gold-flow mechanism and Gustav Cassel's purchasing power parity (PPP) theory, arguing they fail to account for capital movements, trade barriers, and speculation. He builds upon Friedrich von Wieser's theory of individual payment balances to explain how national payment balances tend toward equilibrium. The essay provides a detailed analysis of how inflation and deflation disrupt this equilibrium and how speculation can cause exchange rates to deviate significantly from PPP, using historical examples from post-WWI Austria, Germany, Czechoslovakia, Norway, and Denmark. [Die Tendenz zum Ausgleich der Zahlungsbilanz]: Mahr explores the mechanisms that drive the balance of payments toward equilibrium under stable monetary conditions. He refines Wieser's approach by focusing on the balance between actual income and expenditure. The text distinguishes between the 'income effect' (where changes in national income adjust imports) and the 'price effect' (where price changes adjust trade). Using multiplier models, he demonstrates that while the income effect alone can restore balance, it is slow and costly in terms of lost income; the process is significantly accelerated by price adjustments and foreign repercussions. He also discusses the limitations of flexible exchange rates and foreign exchange controls. [Konjunktur und Außenhandel]: This essay analyzes the reciprocal relationship between business cycles and foreign trade. Mahr examines six scenarios of domestic vs. foreign economic trends. He discusses the 'beggar-my-neighbour' policies of the 1930s and critiques the use of protectionism to achieve full employment. A key contribution is his definition of 'defensive' or 'retaliatory' duties (Erwiderungszölle), which he justifies only when they compensate for productivity losses caused by foreign protectionism. He also analyzes the impact of trade liberalization (integration), arguing that the 'acceleration principle'—where export growth triggers investment in capital goods—is the primary driver of prosperity in integrated economic areas like the OEEC. [International Economic Integration and Prosperity]: Writing in English, Mahr discusses the shift toward reciprocal trade liberalization post-WWII. He argues that the fear of unemployment resulting from integration is often exaggerated. The core of his argument is that the 'acceleration principle' ensures that expanding export industries will generate investment demand for machinery and buildings, creating a general boom that offsets losses in protected domestic sectors. He suggests that the pace of integration should be calibrated to the capacity of the investment goods industries to avoid inflationary overstrain. He also touches upon the territorial extent of integration, citing the Schuman Plan and OEEC as positive examples. [Monopolistische Preispolitik im Konjunkturzyklus]: Mahr investigates why monopolistic prices are more rigid than competitive prices during depressions. He uses mathematical models (linear, convex, and constant elasticity demand functions) to show how a monopolist reacts to changes in variable costs and shifts in demand. He argues that even if theory suggests a price cut, monopolists often maintain high prices due to uncertainty about the demand curve's shape or the fear of state intervention. The text demonstrates that if demand shifts proportionally (steeper curve), the optimal monopoly price remains unchanged, whereas a parallel shift (lower intercept) justifies a price reduction. [Monopolistische Preispolitik in der Depression: Analyse der Nachfrageschemata]: Mahr analyzes why demand curves in a depression likely follow a specific pattern (Schema 1) rather than a parallel shift (Schema 2). He argues that unemployment causes a total collapse in demand for industrial goods among the working class, while the wealthy continue to purchase luxury items regardless of price, leading to a steeper demand curve that discourages monopolists from lowering prices unless production costs decrease. [Preisbildung bei Mehrbetriebs-Monopolen und Kartellen]: The author distinguishes between single-enterprise monopolies, trusts, and collective monopolies (cartels). He explains that cartels exhibit extreme price rigidity due to the difficulty of reaching consensus among members with varying cost structures. A detailed footnote also addresses oligopolies, referencing Chamberlin, and explains why few sellers often result in monopoly-like pricing due to mutual interdependence. [Zusammenfassung der behandelten Probleme und Ergebnisse]: A comprehensive summary of the 18 essays included in the collection. Topics range from the relationship between ethics and economics, collective needs, and time preference (critiquing Böhm-Bawerk), to capital theory, liquidity preference (critiquing Keynes), and the multiplier effect. It also summarizes Mahr's work on international trade, the balance of payments, and the macroeconomic dangers of monopoly pricing in business cycles. [Verlagsanzeigen: Alexander Mahr und Volkswirtschaftliche Literatur]: Publisher's advertisements and book reviews for Alexander Mahr's 'Der unbewältigte Wohlstand' (1964), followed by an extensive list of academic titles in economics, finance, and social policy from the publisher Duncker & Humblot. Includes seminal works by J.M. Keynes, Max Weber, and various contemporary German economists.