The Theory of Money and Credit

The Theory of Money and Credit

by Ludwig von Mises
     
 

ISBN-10: 161293109X

ISBN-13: 9781612931098

Pub. Date: 10/16/2011

Publisher: Tribeca Books

Original 1912 Edition. (English Translation first published 1934.)

Economist and philosopher, Ludwig von Mises present his "Theory of Money and Credit" by first looking at the nature and value of money, why there is a demand for money, and how it is used as currency. He goes on to explain the purchasing power of money and how it determines economic and monetary

…  See more details below

Overview

Original 1912 Edition. (English Translation first published 1934.)

Economist and philosopher, Ludwig von Mises present his "Theory of Money and Credit" by first looking at the nature and value of money, why there is a demand for money, and how it is used as currency. He goes on to explain the purchasing power of money and how it determines economic and monetary policy, often in a way that results in financial melt-downs.

Ludwig Heinrich Edler von Mises (September 29, 1881 - October 10, 1973) was an Austrian-American economist, historian, philosopher, author, and classical liberal who had a significant influence on the modern free-market libertarian movement and the Austrian School.

The Theory of Money and Credit is an economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel in 1912. Along with Carl Menger's Principles of Economics, and Eugen von Böhm-Bawerk's Capital and Interest, this work was a major contribution to economic theory.Its first English translation was published in 1934, and Part Four was added by Mises to the English language edition in 1953. In this work, Mises looks at the nature and value of money, and its effect on determining monetary policy. Included is his regression theorem, that tries to explain why money is demanded in its own right, as moneys at first glance do not serve a consumable need. Mises explained that moneys only can come about after there has been a demand for the money commodity in a barter economy.The German word Umlaufsmittel literally translates as "means of circulation" and was translated into the text of the English version as "fiduciary media". However, the publisher thought the unusual terminology would irritate readers and substituted "money and credit" in the title, thereby losing the specific distinction Mises had made in selecting his original term.

Read More

Product Details

ISBN-13:
9781612931098
Publisher:
Tribeca Books
Publication date:
10/16/2011
Pages:
226
Product dimensions:
8.00(w) x 10.00(h) x 0.48(d)
Age Range:
18 Years

Table of Contents

Preface to the New Edition 9

Introduction Lionel Robbins 11

Preface to English Edition 14

Preface to Second German Edition 23

Part 1 The Nature of Money

Chapter I The Functions of Money

§ 1 The General Economic Conditions for the Use of Money 29

§ 2 The Origin of Money 30

§ 3 The 'Secondary' Functions of Money 34

Chapter II On the Measurement of Value

§ 1 The Immeasurability of Subjective Use-Values 38

§ 2 Total Value 45

§ 3 Money as a Price-Index 47

Chapter III The Various Kinds of Money

§ 1 Money and Money-Substitutes 50

§ 2 The Peculiarities of Money-Substitutes 54

§ 3 Commodity Money, Credit Money, and Fiat Money 59

§ 4 The Commodity Money of the Past and of the Present 62

Chapter IV Money and the State

§ 1 The Position of the State in the Market 68

§ 2 The Legal Concept of Money 69

§ 3 The Influence of the State on the Monetary System 71

Chapter V Money as an Economic Good

§ 1 Money neither a Production Good nor a Consumption Good 79

§ 2 Money as Part of Private Capital 86

§ 3 Money not a Part of Social Capital 90

Chapter VI The Enemies of Money

§ 1 Money in the Socialist Community 91

§ 2 Money Cranks 92

Part 2 The Value of Money

Chapter I The Concept of the Value of Money

§ 1 Subjective and Objective Factors in the Theory of the Value of Money 97

§ 2 The Objective Exchange-Value of Money 100

§ 3 The Problems Involved in the Theory of the Value of Money 102

Chapter II The Determinants of the Objective Exchange-Value, or Purchasing Power, of Money

(I) The Element of Continuity in the Objective Exchange-Value of Money

§ 1 The Dependence of the Subjective Valuation of Money on the Existence of Objective Exchange-Value 108

§ 2 The Necessity for a Value Independent of the Monetary Function before an Object can serve as Money 110

§ 3 The Significance of Pre-existing Prices in the Determination of Market Exchange-Ratios 111

§ 4 The Applicability of the Marginal-Utility Theory to Money 114

§ 5 'Monetary' and 'Non-Monetary' Influences Affecting the Objective Exchange-Value of Money 123

II Fluctuations in the Objective Exchange-Value of Money evoked by Changes in the Ratio between the Supply of Money and the Demand for it

§ 6 The Quantity Theory 124

§ 7 The Stock of Money and the Demand for Money 131

§ 8 The Consequences of an Increase in the Quantity of Money while the Demand for Money remains Unchanged or does not Increase to the same extent 137

§ 9 Criticism of some Arguments against the Quantity Theory 146

§ 10 Further Applications of the Quantity Theory 151

III A Special Cause of Variations in the Objective Exchange-Value of Money arising from the Peculiarities of Indirect Exchange

§ 11 'Dearness of Living' 154

§ 12 Wagner's Theory: the Influence of the Permanent Predominance of the Supply Side over the Demand Side on the Determination of Prices 155

§ 13 Wieser's Theory: the Influence on the Value of Money exerted by a Change in the Relations between Natural Economy and Money Economy 157

§ 14 The Mechanism of the Market as a Force affecting the Objective Exchange-Value of Money 162

IV Excursuses

§ 15 The Influence of the Size of the Monetary Unit and its Sub-divisions on the Objective Exchange-Value of Money 166

§ 16 A Methodological Comment 167

Chapter III The Problem of the Existence of Local Differences in the Objective Exchange-Value of Money

§ 1 Inter-local Price Relations 170

§ 2 Alleged Local Differences in the Purchasing Power of Money 172

§ 3 Alleged Local Differences in the Cost of Living 175

Chapter IV The Exchange-Ratio Between Money of Different Kinds

§ 1 Co-existence of Different Kinds of Money 179

§ 2 Static or Natural Exchange-Ratio 180

Chapter V The Problem of Measuring the Objective Exchange-Value of Money and Variations In It

§ 1 The History of the Problem 187

§ 2 The Nature of the Problem 188

§ 3 Methods of Calculating Index Numbers 189

§ 4 Wieser's Refinement of the Methods of Calculating Index-Numbers 191

§ 5 The Practical Utility of Index Numbers 194

Chapter VI The Social Consequences of Variations in the Objective Exchange-Value of Money

§ 1 The Exchange of Present Goods for Future Goods 195

§ 2 Economic Calculation and Accountancy 203

§ 3 Social Consequences of Variations in the Value of Money when only One Kind of Money is Employed 206

§ 4 The Consequences of Variations in the Exchange-Ratio between Two Kinds of Money 212

Chapter VII Monetary Policy

§ 1 Monetary Policy Defined 216

§ 2 The Instruments of Monetary Policy 219

§ 3 Inflationism 219

§ 4 Restrictionism or Deflationism 231

§ 5 Invariability of the Objective Exchange-Value of Money as the Aim of Monetary Policy 236

§ 6 The Limits of Monetary Policy 238

§ 7 Excursus: The Concepts, Inflation and Deflation 239

Chapter VII The Monetary Policy of Etatism

§ 1 The Monetary Theory of Etatism 242

§ 2 National Prestige and the Rate of Exchange 244

§ 3 The Regulation of Prices by Authoritative Decree 245

§ 4 The Balance-of-Payments Theory as a Basis of Currency Policy 249

§ 5 The Suppression of Speculation 252

Part 3 Money and Banking

Chapter I The Business of Banking

§ 1 Types of Banking Activity 261

§ 2 The Banks as Negotiators of Credit 262

§ 3 The Banks as Issuers of Fiduciary Media 263

§ 4 Deposits as the Origin of Circulation Credit 268

§ 5 The Granting of Circulation Credit 271

§ 6 Fiduciary Media and the Nature of Indirect Exchange 275

Chapter II The Evolution of Fiduciary Media

§ 1 The Two Ways of Issuing Fiduciary Media 278

§ 2 Fiduciary Media and the Clearing System 281

§ 3 Fiduciary Media in Domestic Trade 286

§ 4 Fiduciary Media in International Trade 291

Chapter III Fiduciary Media and the Demand for Money

§ 1 The Influence of Fiduciary Media on the Demand for Money in the Narrower Sense 297

§ 2 The Fluctuations in the Demand for Money 300

§ 3 The Elasticity of the System of Reciprocal Cancellation 302

§ 4 The Elasticity of a Credit Circulation Based on Bills, especially on Commodity Bills 305

§ 5 The Significance of the Exclusive Employment of Bills as Cover for Fiduciary Media 313

§ 6 The Periodical Rise and Fall in the Extent to which Bank Credit is Requisitioned 314

§ 7 The Influence of Fiduciary Media on Fluctuations in the Objective Exchange-Value of Money 318

Chapter IV The Redemption of Fiduciary Media

§ 1 The Necessity for Complete Equivalence between Money and Money-Substitutes 319

§ 2 The Return of Fiduciary Media to the Issuer 321

§ 3 The Case Against the Issue of Fiduciary Media 322

§ 4 The Redemption Fund 325

§ 5 The So-called 'Banking' Type of Cover 331

§ 6 The Significance of Short-Term Cover 334

§ 7 The Security of the Investments of the Credit-Issuing Banks 335

§ 8 Foreign Bills in the Redemption Fund 337

Chapter V Money, Credit, and Interest

§ 1 On the Nature of the Problem 339

§ 2 Money and Interest 346

§ 3 Equilibrium Rate and Money Rate of Interest 349

§ 4 Interest Policy and Production 357

§ 5 Credit and Economic Crises 365

Chapter VI Problems of Credit Policy

I Prefatory Remark

§ 1 The Conflict of Credit Policies 367

II Problems of Credit Policy Before the War

§ 2 Peel's Act 368

§ 3 The Nature of Discount Policy 373

§ 4 The Gold-Premium Policy 377

§ 5 Systems Similar to the Gold-Premium Policy 382

§ 6 The 'Illegitimate' Demand for Money 384

§ 7 Other Measures 386

§ 8 The Promotion of Cheque and Clearing Transactions 387

III Problems of Credit Policy in the Period Immediately After the War

§ 9 The Gold-Exchange Standard 391

§ 10 A Return to a Gold Currency 394

§ 11 The Freedom of the Banks 395

§ 12 Fisher's Commodity Standard 399

§ 13 Future Currency Policy 406

Part 4 Monetary Reconstruction

Chapter I The Principle of Sound Money

§ 1 The Classical Idea of Sound Money 413

§ 2 The Virtues and Alleged Shortcomings of the Gold Standard 416

§ 3 The Full-Employment Doctrine 423

§ 4 The Emergency Argument in Favour of Inflation 426

Chapter II Contemporary Currency Systems

§ 1 The Inflexible Gold Standard 429

§ 2 The Flexible Standard 429

§ 3 The Freely-vacillating Currency 431

§ 4 The Illusive Standard 432

Chapter III The Return to Sound Money

§ 1 Monetary Policy and the Present Trend Towards All-round Planning 435

§ 2 The Integral Gold Standard 438

§ 3 Currency Reform in Ruritania 442

§ 4 The United States' Return to a Sound Currency 448

§ 5 The Controversy Concerning the Choice of the New Gold Parity 452

Concluding Remarks 456

Appendix A On the Classification of Monetary Theories

§ 1 Catallactic and Acatallactic Doctrine 461

§ 2 The 'State' Theory of Money 463

§ 3 Schumpeter's Theory 469

§ 4 'Metallism' 473

§ 5 The Concept of 'Metallism5 in Wieser and Philippovich 475

§ 6 The Two English Schools of Banking Theory 481

Appendix B Translator's Note on the Translation of Certain Technical Terms 482

Index 487

Read More

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >