Carl Menger's monetary theory: A revisionist view

The paper presents a revisionist view of Carl Menger's monetary thought. Although Menger is widely regarded as understanding the monetary system as a Hayekian spontaneous order, Menger recognizes the importance of state in the historical development of money. In his 1900 'Geld', Menger emphasizes the role of state as necessary for the full development of monetary systems. This revisionist view of Menger sheds new light on his thought vis-a-vis a his status as founder of the Austrian School of Economics, as well as the relationship of his thought to that of later members and descendants of the school. Specifically, Menger's position cannot be viewed as aligned with the radical liberalism typical of the literature of these later Austrians.