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The Credit Theory is this: that a sale and purchase is the exchange of a commodity for credit. From this main theory springs the sub-theory that the value of credit or money does not depend on the value of any metal or metals, but on the right which the creditor acquires to "payment," that is to say, to satisfaction for the credit, and on the ...
The credit theory of money, initiated by Joseph Schumpeter, asserts the central role of banks as creators and allocators of the money supply, and distinguishes between "productive credit creation" (allowing non-inflationary economic growth even at full employment, in the presence of technological progress) and "unproductive credit creation ...
Douglas' theory of social credit has been disputed and rejected by most economists and bankers. Prominent economist John Maynard Keynes references Douglas's ideas in his book The General Theory of Employment, Interest and Money, [7] but instead poses the principle of effective demand to explain differences in output and consumption.
The Theory of Money and Credit is a 1912 economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel. In it Mises expounds on his theory of the origins of money through his regression theorem , which is based on logical argumentation.
In The Theory of Credit he says: [16] Money and Credit are essentially of the same nature: Money being only the highest and most general form of Credit. Macleod's Credit Theory of Money influenced Alfred Mitchell-Innes and later work of the modern Chartalists. John R. Commons considered Macleod's work to be the foundation of Institutional ...
Since the credit channel operates as an amplification mechanism alongside the interest rate effect, small monetary policy changes can have large effects if the credit channel theory holds. Asset price boom and bust patterns in the 1980s may have led to the subsequent real fluctuations observed in many advanced economies. [12]
Richard Andreas Werner (born 5 January 1967) is a German banking and development economist who is a university professor at University of Winchester.. He has proposed the "Quantity Theory of Credit", or "Quantity Theory of Disaggregated Credit", which disaggregates credit creation that are used for the real economy (GDP transactions), on the one hand, and financial transactions, on the other ...
The credit cycle is the expansion and contraction of access to credit over time. [1] Some economists, including Barry Eichengreen , Hyman Minsky , and other Post-Keynesian economists , and members of the Austrian school , regard credit cycles as the fundamental process driving the business cycle .