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Subject index

accelerator 87, 92, 93, 119, 120, 121 Austria, economy of 9, 80–81 accumulation of capital 122 Austrian Institute of Economic see also Research (WIFO) 115–16, 118, Accumulation of Capital, by Rosa 136, 151, 154, 165 Luxemburg 3, 41, 54–8, 83, 100, Austrian National Bank (OeNB) 152 112 Austrian Revolution, by Otto Bauer 4, age and 108 17–18, 41, 63–4 agrarian programme of SDP 17 Austrian Social Democratic Party 9, Agricultural University, Vienna 60 10–11, 13, 16, 18, 40, 71, 79 agriculture, problems of 49, 51, 53, 89 Austro-Hungarian Empire see alienation 67, 69 Hapsburg Empire alternative Austrian , defined Austro-Keynesianism 149–50, 159–60 2 Austro-Marxism American Economics Association 133 and Austrian politics 16, 17–19 American Economic Review 93, 167 Bauer and 16, 17, 40, 42 Americanisation of economics 168 and democracy 17 Anschluss (union of Austria with and the First World 60 Germany in 1938) 5 Hilferding and 22, 27 Anti-Dühring, by Friedrich Engels 47 Marx, interpretation of 15–16 Antikritik, by Rosa Luxemburg 58 origins of 14–15, 22 anti-Semitism 10, 116, 154 and Red Vienna 18 Arbeiterhochschule (Workers’ Rothschild and 135, 140 University), Vienna 12, 64, 81, 99 as a school of thought 14 Arbeiterkammer (Chamber of Labour) on socialism 72 102, 103, 137, 158, 165 Arbeiterzeitung 70, 79, 81 Balfour Committee 87 Archiv für Sozialwissenschaft und banks 29–30, 36 Sozialpolitik (Archive of Social see also finance capital; Science and Social Policy) 13, 68 financialisation aristocracy of labour 98 Bavaria, Soviet Republic of 61–2 armaments expenditure 41, 47, 126, BEIGEWUM 168 127 Bennington College 67 Australia 76 Berlin 23, 73, 155 Australia in the World Depression, by Between Two World ?, by Otto E.R. Walker 118 Bauer 4, 80, 88, 89–95 ‘Austria’, various meanings of 7–9 Bologna Process 167, 168 Austrian Communist Party 10, 77 Bolshevism 9, 15, 19, 64, 79 Austrian Consumer Cooperative breakdown of capitalism, theory of Association 111 51–2, 93, 100–101 Austrian economics, liberal 1–2, 32, Britain 27, 52, 61, 86, 148 69–70 Brno (Brünn) 40, 79

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bureaucratically directed monopoly centralisation of capital 30, 32–3 capitalism, Otto Bauer on 91 Chamber of Labour (Arbeiterkammer) business cycle, theory of 102, 103, 137, 158, 165 Austro-Marxists on 16, 19 Chartism 79 Bauer (Helene) on 101 childcare 109–10 Bauer (Otto) on 42–4, 54–8, 80–81, Christian Social Party, Austrian 11, 71, 86, 87–9, 91–5 79 Domar on 93 Christian Socialism 67 Grossmann on 101 class forces, balance of 17–18 Luxemburg on 54–8 class struggle 9, 46, 84 Marx on 56, 86, 88 classical 82, 157 Steindl on 118–21 Collected Works of Otto Bauer 42, Sweezy on 92–3 82 see also Capital Columbia University 67 commodity fetishism 67, 69 Canada 67 communism 16, 142 capacity utilisation 130 Communist Manifesto, by Marx and capital, accumulation of 122 Engels 83 see also economic growth Communist Party, Austrian 77 capital, export of 33, 46 competition, decline of 28, 30, 35–6 capital, theory of 94, 132 concentration of capital 30, 32–3 Capital, by Karl Marx Conservative Party, British 10 Bauer on 41, 43–4, 47–9, 50, 56, 82, consumer cooperatives 53–4, 111 83, 94 consumer preferences 72, 73 Böhm-Bawerk on 24–6 consumer theory 166–7 Hilferding on 25–6, 32 contradictions of capitalism 27, 39 Kurz on 158 Conversations with Post Keynesians, by Luxemburg on 55 J.E. King 118 Rothschild on 135 cooperatives 53–4, 68, 111 volume I 43, 47, 50, 82, 83 costs, social 69–70 volume II 25, 32, 37, 43, 44, 47–8, credit, theory of 35, 44, 51, 88 50, 55, 56, 82, 83 core and periphery 167, 168 volume III 24, 25–6, 32, 37, 47–8, 56, crises, economic 82–3, 94 Austro-Marxists on 16, 19 see also Theories of Surplus Value Bauer (Helene) on 101 Capital and Interest, by Eugen von Bauer (Otto) on 42–4, 54–8, 80–81, Böhm-Bawerk 19, 24 86, 87–9, 91–5 capital levy 65, 74–5 Domar on 93 Capitalism and Socialism after the Grossmann on 101 World War, by Otto Bauer 4, 84–6 Luxemburg on 54–8 capitalism, economics of 4, 15, 16, 19, Marx on 56, 86, 88 28, 42–4, 57, 82, 97–8 Steindl on 118–21 see also crises, economic Sweezy on 92–3 capitalists, consumption of 55 see also Capital Carnegie Foundation for International critical realism 168 Peace 61 Critique of the Gotha Programme, by cartels 30, 33, 35–6, 42, 46, 53, 54, 61, Karl Marx 17 72 Critique of Political Economy, by Karl central planning 59, 61, 63, 65, 67, 70, Marx 43 77, 154, 155 cumulative process, Wicksellian 120

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cyclical fluctuations see business cycle, economic growth 55, 56–7, 58 theory of economic history 67 Czech territory, German- and Czech- Economic Papers, by Josef Steindl 117 speaking areas of 46 economic planning 4, 59, 61, 63, 65, Czechoslovakia 79, 80 67, 70, 77, 154, 155 debt, business 129 Otto Bauer on 53–4, 81 debt, household 164, 167 Egon Matzner on 156 debt-led consumption boom 131 Kurt Rothschild on 146–50 democracy 17, 47, 90, 91, 136 economic sociology 168 see also economic democracy Economics of Everyday Life, by ‘Der Heilige Leopold’ 14 Gertrude Williams 110 Der Kampf 15, 41, 48, 50, 58, 70, 79, economics of socialism 3–4, 13, 59–78, 99, 111, 112 112 Der Weg zum Sozialismus (The Road economics of war 61 to Socialism), by Otto Bauer 64 Economist, The 67 Deutsche Worte 23 Egon Matzner Award 155–6 Development of Commodity Trade in Elgar Companion to David Ricardo Austria, by Helene Bauer 99 157–8 dictatorship 17 Empire, Austro-Hungarian 7–9 Die Neue Zeit 23, 41, 42, 47, 50 endogenous money 130, 168 disproportionality, as cause of crises environmentalism 61, 127 32, 56, 87, 89, 100 Essays in the Theory of Employment, distribution of income 165–6, 167 by Joan Robinson 120 see also rate of exploitation ethics and economics 136, 146–7 distribution of wealth 165–6, 167 Ethics and Economic Theory, by Kurt DSGE (Dynamic Stochastic General Rothschild 136 Equilibrium) models 144 European Union 148 Durch die Kriegswirtschaft zur 156 Naturwirtschaft) (From War excess capacity 128 Economy to Natural Economy), expanded reproduction, theory of 43 by Otto Neurath 61 export of capital 33, 46

63, 168 Fabian socialism 68 econometrics 1, 165 falling rate of profit, theory of 43, 48, Economic Calculation in a Socialist 49, 50–51, 55, 56, 87 Society, by Otto Leichter 71–2 false rationalisation, Bauer on 85–6 economic crises, theory of fascism 5, 90, 91, 97, 116, 138, 142, 143 Austro-Marxists on 16, 19 feminism 73, 110, 168 Bauer (Helene) on 101 fetishism of commodities 67, 69 Bauer (Otto) on 42–4, 54–8, 80–81, Fettered by Socialism, by Christian 86, 87–9, 91–5 Fleck and Heinrich Berger 71 Domar on 93 fictitious capital 28, 38 Grossmann on 101 fictitious commodities, Polanyi on 68 Luxemburg on 54–8 Finance Capital, by Rudolf Hilferding Marx on 56, 86, 88 3, 22, 26–39, 41, 45, 50–51, 71, 83, Steindl on 118–21 112 Sweezy on 92–3 financial capital 26–39, 50 see also Capital financial crises 32, 164 economic democracy 112, 113–4 see also economic crises

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Financial Crisis of the State, by Joseph gold, economic role of 29, 53 O’Connor 75 Graz, University of 99, 117, 157 financial instability hypothesis, Minsky Graz Schumpeter Centre 162 on 129 Great Depression of the 1930s 76, financialisation 38, 143, 160, 164 80–81, 87, 89, 90 First World War 5, 39, 61, 75, 97, 113 Great Transformation, The by Otto fiscal sociology 74 Neurath 66 fixed capital 43 growth regimes 129, 131 forced saving 120 Guild Socialism 5, 64, 65, 67, 68, formal modelling in economics 1, 2, 113–14 142 Foundation for Scientific Economic Habsburg Empire 7–9, 45–6, 80 Policy (WIWIPOL) 151 Handbook of Women’s Work, by Käthe France 23, 27 Leichter 103 Frankfurt Institute 14, 102 Harrod-Domar model of economic free market liberalism 1–2, 69–70 growth 57–8 free trade 148 2, 137, 139, Freie Vereinigung sozialistische 153–4, 160, 167–8 Studenten und Akademiker 14 Heterodox Economics Newsletter 166 French 168 Heterodox Ökonomie, edited by J. Friends of Nature 12 Becker et al. 167 full employment 119, 126, 127, 149–50, Hicks super-multiplier 121 159 historical materialism 16, 26, 16, 48, 74, 146 game theory 138, 145 History of Economic Analysis, by Gefesselt vom Sozialismus, by Christain Joseph Schumpeter 29 Fleck and Hans Berger 71 history of economic thought 82–3, 138, gender inequality 165 162 ‘general cartel’, Hilferding on 30–31, History of Economic Thought Society 33, 36 of Australia 6 general strike 23 Hochschule für Bodenkultur General Theory of Employment, (Agricultural University), Vienna Interest and Money, by J.M. 60 Keynes 119, 134, 135, 139 Hochschule für Welthandel (University Germany 16, 22–3, 27, 31, 38, 46, 91, of International Commerce) 155 97, 150 housing, working-class 107, 109 Glasgow, University of 135 How do Homeworkers in Vienna Live?, global financial crisis of 2007–8 by Käthe Leichter 103 Bauer and 95 How Economics Makes the World Go Hein on 130 Round, by Kurt Rothschild and Hilferding and 38 Hans Bürger 150–51 Kalecki and 95 How We Live, by Käthe Leichter 104–5 Kapeller on 167 human rights 74 on 131–2 Hungary 7, 66 Rothschild on 139, 143 Steindl and 5, 115, 130, 131 ideology 139, 142–3 Stockhammer on 164 Illegal Party, The by Otto Bauer 79, Unger on 160 90 Wray on 38 imperfect competition 122, 149 globalisation of economics 168 see also monopoly; oligopoly

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imperialism Jews, in Austro-Hungarian Empire 10 Adler on 97–8 see also anti-semitism Austro-Marxists on 15 Bauer (Helene) on 100 Kantian theory 96 Bauer (Otto) on 46–7, 50–51, 54–8 Karl Renner Institute 152, 165 Bukharin on 37 Kärnten, province of 8 Hilferding on 28, 33–4, 50–51 Käthe Leichter State Prizes 110 Hobson on 27 Kathedersozialisten (Socialists of the Lenin on 37 Chair) 83 Luxemburg on 54–8 81, 116, 120, 155 Rothschild on 138 see also Post Keynesian economics Sternberg on 100 knife-edge model of economic crises Imperialism, by V.I. Lenin 37 87, 88 Imperialism and World Economy, by Kriegswirtschaftliches Museum (War Nikolai Bukharin 37 Economy Museum), Leipzig 61 Independent Socialist Party (USPD), Kurt-Rothschild Award 152, 165 German 23 Kurt Rothschild Prize of the Austrian indexation of wages 53 Parliament 166 India 155 individualism 69 labour aristocracy 98 inequality in income and wealth 165–6, labour, economics of 5, 103–10 167 labour theory of value 4, 23, 24–6, 29, inflation 23, 53, 119 45, 72, 77, 82, 162 innovation and economic growth laissez-faire 113 126 law, sociology of 111 see also technical change Law of Accumulation, by Henryk institutionalist economics 5, 137, 156, Grossmann 101 168 Le movement sociale 22 Institutions of Private Law, by Karl League of Nations 87 Renner 112 Left Communism 69 ‘integral socialism’, Otto Bauer on liberal socialism 66, 76 65–6, 90 liberalism 51, 69–70 intensification of labour 86 Linz, University of 136, 152, 161, 166 inter-disciplinary cooperation 156, 161, Linz programme of SDP (1926) 16, 79 168–9 logical-historical method 26 inter-generational mobility 162 long waves 87, 89 Interest and Prices, by Michael Woodford 144 machinery, Ricardo on 163 interest, theory of 24, 28–9, 44, 51, Macmillan Committee 87 87 macroeconomics, mainstream 143–5 International Foundation for Visual mainstream economics 132–3, 139, Education 60 143–5, 147, 154 International Labour Organisation Manuscript on the Economic Crisis, by (ILO) 165 Otto Bauer 4 Introduction to the Theory of marginalist economics 15–16, 19–20, Employment, by Joan Robinson 25–6, 77, 83–4 135 market failure 62 investment, determinants of 119, 125, market socialism 4, 65, 68, 72, 149, 130 154 Isotype system 60, 103–10 Marx-Studien 15, 20, 23, 41, 71, 96

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Marxism 47–8, 140, 162 Hilferding on 25–6, 161 see also Austro-Marxism; Capital Rothschild on 137–9, 142 materialism, theory of 16, 48, 74, 146 neoclassical-Keynesian economics 155 mathematics, use of in economics neo-Kantianism 14 142 1, 5, 39, 146, 168 Maturity and Stagnation in American neo-Wicksellian economics 119, 120, Capitalism, by Josef Steindl 5, 121 115, 117, 121–8, 131–3 Neue Wiener Handelsakademie (New McGill University 67 Vienna Business School) 60 media, economics of 168 67 Mensheviks 79 New Left 16 methodology of economics 25–6, 138, New Right 149 143–5 New School of Economics (New York) microfoundations of macroeconomics 95, 165 130, 140, 143–5 15, 27, 47, 54 occupational distribution of the military Keynesianism 54 workforce 103–4 military spending 41, 47, 126, 127 oligopoly 115, 122–3, 127, 134, 137–8, Minsky-Veblen cycles 167 140, 146 mixed economy 75 organic composition of capital 44, 87, modest economist, Kurt Rothschild as 101 145–6 see also falling rate of profit; money, role of in socialism 61 technical change money, theory of 28–9, 36, 88–9, 94 Österreichische Volkswirt (The Austrian money economy, Otto Neurath on 62 Economist) 67 money in a socialist society 68–9, 77 Österreichische Werke 71 money laundering 160 Our Place, by Mark Cocker 63 ‘money manager capitalism’, Hyman Oxford 60, 116, 117, 134 Minsky on 38 monism 74 paradox of debt 129, 130 monopoly, growth of 28, 61 paradox of saving 94 monopoly, theory of 148 paradox of thrift 129 Monopoly Capital, by Paul Baran and Pareto improvement 86 Paul Sweezy 1, 93, 125, 140 Pareto optimality 150 monopoly capital, theory of 38 Parliamentarianism 23 multiplier 119, 120–21 participatory democracy 67 Museum of Society and Economy, see also Guild Socialism Vienna 103 peasantry 18 Museum of , Leipzig 61 philosophy of science 97 planned economy 4, 59, 61, 63, 65, 67, Narodniks, Russian 56 70, 77, 154, 155 National Radical Bourgeois Party 66 51, 82, 162 nationalism, rise of 34, 45–7 pluralism in economics 5, 137–40, 168 nationalities in Hapsburg Empire 8–9, pluralistic socialism, Otto Bauer on 23 65–6 natural costs, Otto Neurath on 69–70 Poland 154 policy, economic Otto Bauer on 53–4, Austro-Marxist critics of 16, 24–6 81 Bauer on 83–4 Egon Matzner on 156 Böhm-Bawerk and 19–20, 24–6 Kurt Rothschild on 146–50

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Political Economy of Growth, by Paul Red Vienna 3, 7, 11–14, 18, 60, 147 Baran 125 Referat für Frauenarbeit (Women positivism 14, 96 Workers’ Department) 102 post-Communism 155 reform, social 27, 31 Post Keynesian economics see also revisionist Marxism Bauer and 88 regulation of financial markets 163 endogenous money, principle of Regulation School, French 168 88–9 reification 68 Kalecki and 94–5, 115 religion 17 Lavoie on 128–30 rent, theory of 49, 73 Minsky and 129–30 res publica 157, 160 Rehm on 165 Research Institute for the Economics Rothschild and 137 of Inequality 161 Steindl and 5, 115, 129–30 Review of Evolutionary Political Stockhammer and 168 Economy 164 on wage-led growth 94 revisionist Marxism 10, 14–15, 16–17, Post-Keynesian Economics, by Marc 18, 27, 32–3 Lavoie 128 revolution, socialist 17, 31, 42, 54, 55 power in economics 140–43 Revolutionary Socialists, Austrian 79, Power in Economics, by Kurt 82 Rothschild 134 Rising Prices, by Otto Bauer 41 Pre-conditions for Socialism, by Eduard Risk Society, The by Ulrich Beck 141 Bernstein 27 risk-bearing, Rothschild on 140–41 primary products, prices of 88 Road to Socialism, The by Otto Bauer see also agriculture 64 Production of Commodities by Means Russia 4, 9, 14, 56, 64, 65–6, 77, 79, 86 of Commodities, by Piero Sraffa 52 Russian Revolution of 1917 64, 91 profit share in net output 119, 127 see also rate of exploitation Salzburg, province of 8 profit squeeze, Glyn and Sutcliffe on Say’s Law 42, 56 127 Schutzbund 12 profit-led growth 95, 164 Scotland 135–6 proletariat, Max Adler on 97–8 Secession, Vienna 116 promoter’s profit, Hilferding on 29–30 Second International 3, 7, 15 Prosperity and Depression, by Gottfried segmentation of the working class 98 Haberler 92 shock therapy 155 simple commodity production 42–3, 82 Quantity Theory of money 29 Small and Big Business, by Josef Question of Nationalities and Social Steindl 116, 122 Democracy, by Otto Bauer 3, 41, social costs 69–70, 85–6 45–7 social democracy 2, 4 see also Austro-Marxism racism 34 Social Democratic Party, Austrian 9, rate of exploitation 47, 92 10–11, 13, 16, 18, 40, 79 rate of interest 44, 51, 87, 132 Social and Economic Museum, Vienna rate of profit 28, 29, 31, 43, 48, 87, 101, 60 123, 127 Social Revolutionaries, Russian 56 ratings agencies 160 Social Science Centre (WZB), Berlin rationalisation of industry 84–6, 98 155 rationing 147–8 Socialisation Commission 102

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socialism, economics of Theory of Capitalist Development, by Bauer on 4, 63–6 Paul Sweezy 27, 92, 95, 122 Goldscheid on 4, 73–6 Theory of Production, by Heinz Kurz Hilferding on 34–7 and Neri Salvadori 157 Leichter (Otto) on 4, 70–73 theory of value see neoclassical Marx on 15, 34–5 economics; labour theory of value Neurath on 4, 60–63, 158–9 Theory of Wages, by Kurt Rothschild Polanyi on 4, 13, 66–70 134 Renner on 112–14 Third International 7, 15, 37 Schiff on 4, 76–8 Through War Economy to Natural see also Guild Socialism Economy, by Otto Neurath 61 socialist planning 4, 14, 59, 61, 63, 65, time preference, social rate of 78 67, 70, 77, 154, 155 Tobin tax 160 socialist revolution 17, 31, 42, 54, 55 Trade Cycle, The by Roy Harrod 116, Socialist Student League 22 118–19, 120, 121 Socialists of the Chair trade cycle, theory of see business (Kathedersozialisten) 83 cycle, theory of Sociological Society, Austrian 73 trade unions 53, 98 sociology 73, 96, 97, 112, 168 Trieste summer school 118 sound finance 23, 81 trusts 42, 46, 61 Soviet Union 4, 14, 65, 66, 69, 77, 86 Two-and-a-half International 16 stagnation, economic 115, 123–4, 126, Tyrol, province of 8 131–3, 159 standard commodity, Piero Sraffa on ultra-imperialism 39 158, 163 underconsumption 32, 43, 76, 86, 88, state, class neutrality of 17–18 92–5 state, economic role of 28, 64, 112–14, unemployment 57, 86, 105–8, 151, 165 149–50 unequal exchange 45–6 state capitalism 4, 23, 75–6, 112–14 Union of Soviet Socialist Republics state socialism 75 (USSR) see Soviet Union Stolper-Samuelson theorem 164 United Kingdom 27, 52, 61, 86, 148 subjective theory of value 83–4 15, 31, 38, 71, 75, 85, 95, see also neoclassical economics 115 super-multiplier 120–21 University of Berlin 73 surplus value, theory of 49 University of Budapest 76 see also Capital; labour theory of University of Duisburg-Essen 165, 166 value University of Economics and Business Swabian housewife logic 154 Administration, Vienna (WU) System des Marxismus, by Georg von 115, 161, 163, 165, 167 Charasoff 41 University of Glasgow 5, 135 University of Graz 99, 117, 157 Tableau Économique 162 University of Heidelberg 102 tariffs 23, 33, 45, 46–7, 53, 54, 89 University of Linz 136, 152, 161, 166 tax avoidance and evasion 160 University of Massachusetts, Amherst taxation, principles of 74–5 163 Taylorism 85 University of Technology, Vienna technical change 49, 53, 85–6, 98, 124, (WUT) 155 125, 126 University of Vienna 19, 40, 73, 76, 96, Theories of Surplus Value, by Karl 99, 101, 116, 135 Marx 41, 48, 50, 54 University of Zürich 99

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use value 25–6 Werkausgabe (Collected Works) of USPD (Independent Socialist Party), Otto Bauer 42, 82 German 23 WIFO (Austrian Institute of Economic utopianism 63, 77 Research) 115–16, 118, 136, 151, 154, 165 value, theory of see labour theory of Wirtschaft und Gesellschaft (Economy value; marginalist economics and Society) 158 Vienna 8, 10, 11–14, 60 Wirtschaftsrechnung in der Vienna Business School 115 sozialistischen Gesellschaft, by Vienna Circle 13, 14, 16, 60, 61, 64 Otto Leichter 71–2 Vienna Institute for International Wissenschaftszentrum (WZB), Berlin Economic Studies (wiiw) 154 155 ‘Vienna Union’16 WIWIPOL (Foundation for Scientific Vienna University of Technology Economic Policy) 151 (WUT) 155 women, economic role of 102–10 Vorarlberg, province of 8 women’s housing 107–9 Vorwärts 23 women in academic economics 153 vulgar Marxism 47 Women and Work, by Gertrude Williams 110 wage-led growth 94–5, 164 Women’s Work, by Käthe Leichter 103 wages Workers’ University, Vienna 64, 99 differentials in 73 working class, imperialism and 34, indexation of 53 46–7 real 47, 52, 53 World of Labour, by G.D.H. Cole 64 share in net output 119, 123, 164 Yale University 123 theory of 134, 140–41, 149 see also rate of exploitation Zukunft (workers’ school in Vienna) war economy 61, 61, 112 111 wealth, distribution of 165–6, 167 Zwischen Zwei Wertkriegen? (Between wealth tax 65, 74–5 Two World Wars?), by Otto Bauer welfare, economic and social 147 4, 80, 88, 89–95

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