Vera Lutz facts for kids

Vera Constance Lutz (born Smith, 1912–1976) was an important British economist. She was married to another famous economist, Friedrich Lutz. Vera Lutz helped us understand how economies grow and how money works.

Who Was Vera Lutz?

Vera Smith was born in Kent, England, in 1912. She loved learning and went to the London School of Economics. There, she studied from 1930 to 1935 and earned a special degree called a PhD. This degree shows she was an expert in her field.

In 1937, Vera married Friedrich Lutz, who was also an economist. They worked together on many ideas. Before World War II started, they moved to Princeton University in the United States. Later, in 1951, they moved to Zurich, a city in Switzerland.

What Did Vera Lutz Study?

Vera Lutz focused on several key areas in economics. She studied how money is created and used, which is called credit theory. She also looked at how countries become richer and more developed, known as economic development theory. Another area she explored was labour economics, which is about how people work and earn money.

Important Ideas and Books

Vera and Friedrich Lutz wrote a book together in 1951 called Theory of Investment of the Firm. This book was very important for understanding how businesses decide to invest their money. Many economists used it for years.

Vera Lutz also wrote her own book, Italy, a Study in Economic Development. In this book, she used ideas from neoclassical economics. She looked at why Northern and Southern Italy were different in their economic growth. She also studied how some big companies in Italy acted like monopolies, meaning they had too much control over the market. The Banca d'Italia, which is Italy's central bank, even invited Vera and Friedrich to study these topics.

Key Works by Vera Lutz

• Real and Monetary Factors in the Determination of Employment Levels, 1952.
• Multiplier and Velocity Analysis: A Marriage, 1955.