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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 ...
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 ...
Multiple theory branches developed separately and are to some extent compatible (emphasizing different aspects of money), while remaining united in opposition to the New Keynesian theory of money creation. Monetary circuit theory was developed in France and Italy, and emphasizes credit money creation by banks. A detailed explanation of monetary ...
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.
The loanable funds doctrine extends the classical theory, which determined the interest rate solely by saving and investment, in that it adds bank credit. The total amount of credit available in an economy can exceed private saving because the bank system is in a position to create credit out of thin air.
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 ...
Credit (from Latin verb credit, meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date ...