Gottfried Haberler’s Review of E. Melchinger’s Die internationale Preisbildung (1930)

Haberler’s brief book review assesses Melchinger’s attempt to clarify the relationship between international-trade theory and general economic theory. He recognizes the book’s intellectual ability but criticizes its difficult exposition, placing it among contemporary German theoretical writings that foreigners may find nearly unintelligible. His substantive objections concern the restricted definition of international trade and the weak connection between conceptual discussion and particular economic problems.

As Haberler presents it, Melchinger distinguishes international from domestic trade through differences in monetary units and standards of value, with foreign-exchange rates linking national monetary systems. Haberler does not reject this approach, but argues that it leaves other grounds for distinguishing international exchange insufficiently explored:

We may inquire into the causes and effects of the alleged immobility of capital and labor as well as into the problems arising out of the fact that monetary standards and systems in different countries differ.

“Alleged” makes factor immobility a question for investigation rather than an unquestioned premise. Haberler thus broadens the inquiry beyond monetary differences to the conditions governing movements of labor and capital.

The review then turns to the fourth and fifth chapters, which address trade and payments balances, purchasing-power parity, and commercial policy. Its concluding criticism is structural:

There is, however, little connection between these short observations and the preceding philosophical discussion.

For Haberler, conceptual clarification must connect with the explanation of concrete trade problems. The review’s significance lies in this demand for a broader analytical framework and a demonstrable link between theoretical foundations and applications.