PREFACE.

IN writing this book the author has set himself a rather ambitious and comprehensive task. In recent years the literature on economic crises and cycles has become abounding, and at the same time the discussion on the most controversial points has, under the influence of the urgent problems of practical policies, been carried ever further and deeper, especially among the English economists who have unmistakably taken the lead in this field of economic science. But perhaps there has now come the moment for an attempt at a synthetic presentation of the whole body of facts and thoughts on this all-important subject. To do this within the precincts of a book of reasonable dimensions and in a manner combining scientific responsibility with as little obscurity as possible, is surely a task the arduousness of which might be claimed as an extenuating circumstance for any of its shortcomings.

Since this book addresses itself both to the world of academic economists and to a wider public, it runs the risk partly of repeating familiar things to the former and partly of being too technical for the latter. In order to reduce this risk, the author made the arrangement, rather unusual in England, of reserving the main text of the book, set in normal type, for the more essential and elementary parts, while using small type for explanations of a more detailed, technical, or advanced character. Keeping this in mind, both groups of readers may be able to turn to that aspect of the book which suits their taste or their training. Regarding the rather liberal footnotes, it may also be said that they have been added solely for the benefit of those who will find them useful while the main body of the argument is absolutely intelligible without them. It is hoped, therefore, that the good intentions of the author will not expose him to being criticized for academic pedantry.

Though at every possible occasion references to other theories and opinions have been made, the reader will realize very soon that the author has some definite opinions of his own. What they are the reader will learn during the course of the book. It seems indicated, however, to say in advance that the author’s ambitions went towards a well-reasoned synthesis rather than towards bold originality. In this he cannot hope to please anybody among the more pronounced and pugnacious adherents of the different conflicting schools. All he hopes for is that his attitude will not unduly lack in reason and logical coherence.

As a foundation for this book use has been made of the author’s treatise on Krise und Konjunktur which was written in 1931 and published in 1932 in Germany, while a somewhat different and enlarged Swedish translation of it appeared in 1934. Large parts have been translated, with many alterations, from the German and incorporated into the present book, while other parts written in English by the author have been added in order to complete as far as possible the account of the facts and to deepen the theoretical exposition. Both the translation of the German and the revision of the English parts are due to Dr. Vera Smith to whom the author is greatly indebted for her fine work. He also wishes to acknowledge his gratitude to Mr. Ragnar Nurkse, at the League of Nations, for having taken the initiative in preparing the publication of this book.

Unfortunately, the book was already set in type when Mr. Keynes’ new work “The General Theory of Employment, Interest and Money” (London, 1936) was published. The author believes, however, that the reader will be able easily to discern where and why the bold views of Mr. Keynes do not coincide with those set forth in the present book.

WILHELM RÖPKE.

KADIKÖY, (MARMORA), March, 1936.