Knut Wicksell


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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Wicksell, Knut

 

Born Dec. 20, 1851, in Stockholm, died there May 3, 1926. Swedish economist.

After graduating from the University of Uppsala in 1884, Wicksell taught political economy at the University of Lund from 1900 to 1916. In his studies and research on the theory of value, he attempted to unite the theory of the Austrian school on marginal utility with the mathematical school’s theory of prices. Wicksell is also notable as the author of works on finance, monetary circulation, and credit. His re-searches on the influence of bank credit and the discount rate on the average level of commercial prices and the fluctuation caused by the interplay of market forces were the basis of the so-called credit theory of business conditions. Wicksell also spoke out as an ardent neo-Malthusian.

WORKS

Über Wen, Kapital, und Rente … . Jena, 1893.
Vorlesungen Uber Nationalokonomie auf Grundlage des Marginal-prinzipes, vols. 1-2. Jena, 1913-22.
Finanztheoretische Untersuchungen nebst Darstellung und Kritik. Jena, 1896.
Geldzins und Guterpreise. Jena, 1898.
The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
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career and my thinking have been two, Frank Knight and Knut Wicksell. Frank Knight was my teacher and my role model and everything else.
Swedish economist Knut Wicksell's century-old concept of a "natural" interest rate - at which real (inflation-adjusted) GDP growth follows a long-term average while inflation remains stable - makes sense.
Swedish economist Knut Wicksell's century-old concept of a "natural" interest rate a at which real (inflation-adjusted) GDP growth follows a long-term average while inflation remains stable a makes sense.
This bothered us, because the basic economic theory we were taught - the theory built by Alfred Marshall, Knut Wicksell, and Robert Solow - said everything was driven by structural forces.
This bothered us because the basic economic theory we were taught - the theory built by Alfred Marshall, Knut Wicksell, and Robert Solow - said everything was driven by structural forces.
Knut Wicksell (1851-1926)--like Fisher--had broad intellectual interests, reflected both in his university studies and in his writings and speeches.
This is based on the idea, widely attributed to Swedish economist Knut Wicksell, that keeping inflation close to our objective requires that the real short-term interest rate should track the economy's underlying "natural" real rate of interest (Woodford 2003, Wicksell 1936).
He describes his methodology, then offers a chronologically arranged retrospective survey beginning with Aristotle and ending with Jean Baptiste Say (1767-1832), Knut Wicksell, and metallism and chartalism.
The other approach, inspired by the work of Knut Wicksell, treats the state as a process of interaction, with fiscal phenomena emerging from that interaction.
The grounds for the debate were really quite simple--both men had in their respective theories of the cycle drawn upon a framework that had been developed by a Swedish economist named Knut Wicksell. Wicksell wrote in German.
Why is the idea, common to John Maynard Keynes, Milton Friedman, Knut Wicksell, Irving Fisher, and Walter Bagehot alike, that governments must intervene strategically in financial markets to stabilize economy-wide spending now a contested one?
In the 1920s, Swedish economist Knut Wicksell defined it as the interest rate at which, economy-wide, desired investment equals desired savings, implying no upward pressure on consumer prices, resource prices, or wages as aggregate demand outruns supply, and no downward pressure on these prices as supply exceeds demand.