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Carl Menger and the network theory of money

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  • Mikael Stenkula

Abstract

Carl Menger has occasionally been cited as a forerunner to the network theory of money. This article analyses Carl Menger's monetary theory and evaluates whether he was aware of the network characteristic of money from a retrospective angle. The result is mixed. Menger is one of the first to discuss the marketability and liquidity of an asset, which in German he denotes Absatzfahigkeit. This concept has a strong connection with the network aspect of a commodity. However, he is not distinct enough in his analysis and there is a lack of depth in his understanding.

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  • Mikael Stenkula, 2003. "Carl Menger and the network theory of money," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 10(4), pages 587-606.
    • Handle: RePEc:taf:eujhet:v:10:y:2003:i:4:p:587-606
    DOI: 10.1080/0967256032000137737
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    References listed on IDEAS

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    Cited by:

    1. Fregert, Klas, 2015. "Heckscher on the Slow Monetization of Sweden and His Incidental Refutation of Jevons and Menger," Working Papers 2015:23, Lund University, Department of Economics, revised 14 Oct 2015.
    2. Eduard Braun, 2015. "Carl Menger’s Contribution to Capital Theory," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 23(1), pages 77-100.
    3. Malavika Nair & Nicolás Cachanosky, 2017. "Bitcoin and entrepreneurship: breaking the network effect," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(3), pages 263-275, September.
    4. Waldenström, Daniel, 2004. "Is Swedish Research in Economic History Internationally Integrated?," SSE/EFI Working Paper Series in Economics and Finance 566, Stockholm School of Economics, revised 12 Aug 2005.
    5. Daniel Nientiedt, 2023. "Menger’s account of the origin of money as a case study in the evolution of institutions," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(2), pages 205-215, June.
    6. Gilbert Bougi, 2005. "Pourquoi le problème monétaire de Menger reste-t-il non résolu?," CAE Working Papers 31, Aix-Marseille Université, CERGAM.

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