Gustav Cassel
Encyclopedia
Karl Gustav Cassel was a Swedish
economist
and professor
of economics
at Stockholm University
.
Cassel's perspective on economic reality, and especially on the role of interest, was rooted in British neoclassicism
and in the nascent Swedish schools. He is perhaps best known through John Maynard Keynes
' article Tract on Monetary Reform (1923), in which he raised the idea of purchasing power parity
.
"Cassel was beyond doubt one of the outstanding figures in economic science during the inter-war period(central europe). His authority was second only to that of Lord Keynes, and his advice was eagerly sought on many occasions by his own Government and by foreign Governments."
He was also a founding member of the Swedish school of economics, along with Knut Wicksell
and David Davidson
. Cassel came to economics from mathematics. He earned an advanced degree in mathematics from Uppsala University
and was made professor at Stockholm University
during the late 1890s but went to Germany before the turn of the century to study economics, publishing papers spanning just under forty years.
Apart from the rudiments of a purchasing power parity theory of exchange rates (1921), he produced an 'overconsumption' theory of the trade cycle (1918). He also worked on the German reparations problem. He was a member of many committees dealing with matters of state in Sweden and devoted much labour to the creation of a better system of budget exposition and control (1905–21). He was one of the Swedish representatives at the International Chamber of Commerce
meeting in London
in 1921. He became a member of Svenska Vetenskapsakademien and correspondent for Sweden to the Royal Economic Society
.
In addition to his books in Swedish
, he published the following works in other languages: Das Recht auf den vollen Arbeitsertrag (1900), The Nature and Necessity of Interest (1903), Theoretische Sozialökonomie (1919). His Memorandum on the World's Monetary Problems, published by the League of Nations
for the International Financial Conference in Brussels
in 1920, attracted widespread attention.
Some of his notable students include Nobel Prize in Economics laureates Bertil Ohlin
and Gunnar Myrdal
, and the future Moderate Party
leader Gösta Bagge
.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and professor
Professor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
of economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
at Stockholm University
Stockholm University
Stockholm University is a state university in Stockholm, Sweden. It has over 28,000 students at four faculties, making it one of the largest universities in Scandinavia. The institution is also frequently regarded as one of the top 100 universities in the world...
.
Cassel's perspective on economic reality, and especially on the role of interest, was rooted in British neoclassicism
Neoclassical economics
Neoclassical economics is a term variously used for approaches to economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand, often mediated through a hypothesized maximization of utility by income-constrained individuals and of profits...
and in the nascent Swedish schools. He is perhaps best known through John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
' article Tract on Monetary Reform (1923), in which he raised the idea of purchasing power parity
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
.
"Cassel was beyond doubt one of the outstanding figures in economic science during the inter-war period(central europe). His authority was second only to that of Lord Keynes, and his advice was eagerly sought on many occasions by his own Government and by foreign Governments."
He was also a founding member of the Swedish school of economics, along with Knut Wicksell
Knut Wicksell
Johan Gustaf Knut Wicksell was a leading Swedish economist of the Stockholm school. His economic contributions would influence both the Keynesian and Austrian schools of economic thought....
and David Davidson
David Davidson (economist)
David Davidson was a noted Swedish economist. He was professor of economics and taxation law at Uppsala University from 1890 to 1919....
. Cassel came to economics from mathematics. He earned an advanced degree in mathematics from Uppsala University
Uppsala University
Uppsala University is a research university in Uppsala, Sweden, and is the oldest university in Scandinavia, founded in 1477. It consistently ranks among the best universities in Northern Europe in international rankings and is generally considered one of the most prestigious institutions of...
and was made professor at Stockholm University
Stockholm University
Stockholm University is a state university in Stockholm, Sweden. It has over 28,000 students at four faculties, making it one of the largest universities in Scandinavia. The institution is also frequently regarded as one of the top 100 universities in the world...
during the late 1890s but went to Germany before the turn of the century to study economics, publishing papers spanning just under forty years.
Apart from the rudiments of a purchasing power parity theory of exchange rates (1921), he produced an 'overconsumption' theory of the trade cycle (1918). He also worked on the German reparations problem. He was a member of many committees dealing with matters of state in Sweden and devoted much labour to the creation of a better system of budget exposition and control (1905–21). He was one of the Swedish representatives at the International Chamber of Commerce
International Chamber of Commerce
The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 130 countries have interests spanning every sector of private enterprise....
meeting in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
in 1921. He became a member of Svenska Vetenskapsakademien and correspondent for Sweden to the Royal Economic Society
Royal Economic Society
The Royal Economic Society is incorporated by a Royal Charter dated 2 December 1902. It is one of the oldest economic associations in the world. Currently it has over 3,300 individual members, of whom 60% live outside the United Kingdom...
.
In addition to his books in Swedish
Swedish language
Swedish is a North Germanic language, spoken by approximately 10 million people, predominantly in Sweden and parts of Finland, especially along its coast and on the Åland islands. It is largely mutually intelligible with Norwegian and Danish...
, he published the following works in other languages: Das Recht auf den vollen Arbeitsertrag (1900), The Nature and Necessity of Interest (1903), Theoretische Sozialökonomie (1919). His Memorandum on the World's Monetary Problems, published by the League of Nations
League of Nations
The League of Nations was an intergovernmental organization founded as a result of the Paris Peace Conference that ended the First World War. It was the first permanent international organization whose principal mission was to maintain world peace...
for the International Financial Conference in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
in 1920, attracted widespread attention.
Some of his notable students include Nobel Prize in Economics laureates Bertil Ohlin
Bertil Ohlin
Bertil Gotthard Ohlin was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People's Party, a social-liberal party which at the time was the largest party in opposition to the governing Social...
and Gunnar Myrdal
Gunnar Myrdal
Karl Gunnar Myrdal was a Swedish Nobel Laureate economist, sociologist, and politician. In 1974, he received the Nobel Memorial Prize in Economic Sciences with Friedrich Hayek for "their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the...
, and the future Moderate Party
Moderate Party
The Moderate Party is a centre-right, liberal conservative political party in Sweden. The party was founded in 1904 as the General Electoral League by a group of conservatives in the Swedish parliament...
leader Gösta Bagge
Gösta Bagge
Gösta Adolfsson Bagge was a Swedish professor of economics and conservative politician.Born on 27 May 1882 in Stockholm, Gösta Bagge was declared leader for the National Organization of the Right after the sudden retirement of Arvid Lindman in 1935, and remained its leader until 1944...
.
External links
- Cassel, Gustav. The Theory of Social Economy. New York: Augustus M. Kelley, 1967.