ABSTRACT
This chapter is devoted to the founder of the Early Austrian School of Economics: Carl Menger. While he is mostly remembered for his dispute over method with Gustav Schmoller—the “Methodenstreit”—Menger was concerned with developing a theory of method that both built upon the classical liberal economics of Adam Smith and incorporated some of the historical notions from the German Historical School. The first section of this chapter is an overview of these ideas, while the second section is devoted to the notion of money. Menger wrote about money for most of his life—from his first book to his last article. There is no doubt that Menger is most famous because of his work on theoretical economics, but his contributions to the subjective value of money are also of immense importance.
