The Theory of Money and Credit

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First edition (in German) TheorieDesGeldesUndDerUmlaufsmittel.jpg
First edition (in German)

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. It features the earliest statement of Mises's business cycle theory. The book also includes the first exposition of Mises's regression theorem, which aimed to explain the purchasing power of money using the subjective marginal utility theory of value, [1] an accomplishment which has been argued to have reunited the microeconomic and macroeconomic spheres. [2] The book also details Mises's views on the origins of money, on the gold standard, on the forms and functions of money, and on the role of the State and of the banking system with regard to money.

Contents

The Theory of Money and Credit is one of the foundational works of the Misesian branch of the Austrian School of economic thought. Murray Rothbard considered The Theory of Money and Credit to be one of the four major works of Mises's career, alongside Socialism (1922), Human Action (1949), and Theory and History (1957). [3]

Applications

Along with Carl Menger's Principles of Economics , and Eugen von Böhm-Bawerk's Capital and Interest , the book is one of the foundational works of the Austrian School.

Publication history

Criticism

According to Michael Hendricks, "the regression theorem does a good job of explaining the creation of money, however it does not necessarily apply to all forms of money." [6]

References

  1. Rothbard, Murray (2011). Economic Controversies. Auburn, Alabama.: Ludwig von Mises Institute. p. 695. ISBN   978-1-933550-96-1.
  2. Rothbard, Murray (2011). Economic Controversies. Auburn, Alabama: Ludwig von Mises Institute. p. 898. ISBN   978-1-933550-96-1.
  3. Mises, Ludwig (2007). Theory and History. Ludwig von Mises Institute. pp. xi–xii. ISBN   978-1-933550-19-0.
  4. 1914 review by J.M. Keynes.
  5. Hülsmann, Jörg Guido, 2007. Mises: The Last Knight of Liberalism. p. 217, note 7.
  6. Michael Hendricks (6 June 2013). "Reconciling the Regression Theorem with Bitcoin". Seth King. Retrieved 12 December 2014.