The influence of economics on good governance

Abstract

The first issue of Nemzetgazdasági Szemle, considered the “predecessor” of Közgazdasági Szemle, was published 150 years ago. Although the journal was filled with writings by some of the most important economic thinkers of the time, the initiative temporarily failed due to lack of interest from subscribers, and the journal has only been published regularly since 1877. We commemorate the anniversary – and the distinguished representatives of our science in the second half of the 19th century – by republishing the introductory article of the only issue of 1874, which was marked “July-December”. In his inaugural essay, Menyhért Lónyay, President of the Hungarian Academy of Sciences (and also former Minister of Finance and Prime Minister) makes a number of observations about the relationship between economics and economic policy, theory and good governance that are still valid today. Lónyay’s ideas – covering the issues of labour, knowledge, capital accumulation and the conditions necessary for the effective functioning of the economy – cited from or formulated on the basis of Adam Smith’s seminal work, are worth reading and revisiting.