The Foundations of Economics: History and Theory in the Analysis of Economic Reality

Walter Eucken` s "The Foundations of Economics" (Grundlagen der Nationalökonomie) is the classic work of German economic literature in the past 60 years. In particular, the book was of great importance for the economic order that developed in the Federal Republic of Germany after the Second World War and made Germany the leading economic power in Europe. Eucken places great emphasis on economic reality in his work. Taking everyday observations as his starting point, he attempts to infer complex connections. Eucken provides the reader not only with a comprehensive criticism of classical economics, but also in particular with an analysis of economic systems, economic order, and the course of economic events. As a consequence of the dramatic changes that have taken place in Eastern Europe, many states now find themselves facing problems similar to those faced by West Germany in its earliest days. Eucken`s considerations can be of assistance in the search for the correct concepts. This reprint of the English translation of Eucken`s book thus not only gives a broad readership renewed access to a classical work, but can be instrumental in supporting the transition to a market economy in many countries and in facilitating the search for good concepts.