Maggs Bros.

The latter of two books written by the founder of the Austrian School Carl Menger (1840-1921). Menger’s Problems of Economics and Sociology is a foundational treatise defending economic theory against the German Historical School’s historical-empirical approach. This present text is an attempt to generate a more comprehensive general methodology:

“We will accordingly have to distinguish in the field of economy three groups of sciences for our special purposes: first, the historical sciences (history) and the statistics of economy, which have the task of investigating and describing the individual nature and the individual connection of economic phenomena; second, theoretical economics, with the task of investigating and describing their general nature and general connection (their laws); finally, third, the practical sciences of national economy, with the task of investigating and describing the basic principles for suitable action… in the field of national economy (economic policy and the science of finance).” (Menger, pp. 38-39).