German Fears in Economic Modelling

Abstract

For Expo 58, the first World’s Fair after WWII, Wilhelm Krelle constructed a simulator of the economic circular flow—one of the material manifestations of the distinction between economic goals and the mechanics bringing them about that informed the mentality of many neo-Keynesian economists after WWII. In this article, I present a cultural genealogy of this mentality through the unusual career path of Wilhelm Krelle, a genealogy that reveals a deeply German experience. In contrast to the opposition between economic reasoning and the normative sphere, I show how Krelle’s preference for mechanical economic modelling was nourished by Prussian values of militarism, nationalism, and the Protestant faith.

Keywords

• Neo-Keynesian economics
• normative-positive divide
• World War II
• German economics
• Krelle (Wilhelm)