As a boundary science, econometrics is younger than the adjacent regions, which fact likewise has advantages and disadvantages. As a disadvantage, the lack of an established doctrine, and also the lack of established textbooks, can be felt; as an advantage is the fresh enthusiasm, with which its students work.

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The world is in a process of a great transformation. In a considerable part of it a new economic order, "communism," is being vigorously tried out. Elsewhere an old order is passing as one country after another throws of the yoke of colonialism. The wholesale introduction of Western techniques and ways of life shaking the foundations of numerous beliefs and attitudes, for good and for evil.

Econometrics is the name for a field of science in which mathematical-economic and mathematical-statistical research are applied in combination. Econometrics, therefore, forms a borderland between two branches of science, with the advantages and disadvantages thereof; advantages, because new combinations are introduced which often open up new perspectives; disadvantages, because the work in this field requires skill in two domains, which either takes up too much time or leads to insufficient training of its students in one of the two respects.

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To Ehrenfest I owe a great deal. I studied physics at a time when a number of fascinating persons were there together. Ehrenfest would not instruct as such, as he preferred dialogue. Thanks to him I could participate in discussions with Albert Einstein. Also Kamerling Onnes, Lorentz and Zeeman were present. Being a student in the hands of such teachers, you are very fortunate indeed.

It is also our hope that the interpretation of the socio-economic optimum as a set of institutions may help to get under way a discussion of a more scientific character than was usual so far about the relative merits of various existing socio-economic orders, especially those of Eastern and Western Europe, including such interesting cases as Sweden, Switzerland and Yugoslavia. A considerable amount of better information about various types of external effects will be one of the necessary ingredients if we want to give concrete content to such merit rating of various systems.

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