"Economics deals with society's fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen."" This is a quote of Ludwig von Mises. He was one of the most influential and important economist of the early and mid 1900's. Mises was born in 1981 in Lemberg, a city of Austro-Hungry. His father was a successful construction engineer for the Austrian Railroad Ministry. Ludwig was the oldest of three boys, but one died at an early age. His other brother Richard went on to become a very well know mathematician. Ludwig attended a private elementary school, and then went to the public Akademishe Gymnasium in Vienna from 1892 to 1900. The next years he spent at the University of Vienna. Here he studied in the tradition of the founder, Carl Menger. During this time he attended the seminar with Eugen von Bohm-Bawerk. In 1906 we received his doctorate in law and economics. By this time he was establishing himself as one of the next intelligent economists. For the next few years he began working for the Austrian Chamber of Commerce, which was an official advisory agency of the Austrian government, taught a senior economics class at the Viennese Commercial Academy for Girls, and completed compulsory military service by serving a four week period of duty a year for 3 years. By 1912 he had completed his first major work, Theory of Money and Credit. .
The classical economists had foundered badly is several areas. They separated money from the rest of the economy, and looked at it in as separate theoretical terms. Mises argued that it was price that determined the purchasing power of money. In the Theory of Money and Credit, Mises tried to integrate all parts of the economic system, which had previously been separated. He wanted to ground the economics of money and its purchasing power, which was previously called "price level."" The previous view of relations between the quantity of money and the price level, of "velocities of circulation- and "equations of exchange- was explicitly demolished by Mises on behalf of an integrated application of the marginal utility theory to the supply and demand for money itself.