The Theory of Money and Credit

The Theory of Money and Credit
Author Ludwig von Mises
Original title Theorie des Geldes und der Umlaufsmittel
Translator H. E. Batson
Country Austria
Language German
Series Bedford series of economic handbooks
Subject Economics
Genre Non-fiction, treatise
Publisher Jonathan Cape
Publication date
1912
Published in English
1934
Pages 445 pp. illus.
OCLC 317802102

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 explains the origins of money through his "regression theorem", which is based on logic, not historic explanations. It is one of the foundational works of the Austrian School of economic thought.

Content

The regression theorem explains why commodity money exists today. Mises looks at the origin, nature and value of money, and its effect on determining monetary policy. It does not concern all adaptations of money. He uses the so-called regression theorem, a statement backed by a step by step, logical proof. It explains why money is demanded in its own right. Mises explained that moneys only can come about after there has been a demand for the money commodity in a barter economy.

Applications

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

Publication history

Criticism

"The regression theorem does a good job of explaining the creation of money, however it does not necessarily apply to all forms of money."[2]

Application to Bitcoin

Since 2010, there has been a blog centered debate whether bitcoin violates or adheres to the regression theorem.

bitcoins adhere to the regression theorem when backing by a service, the service of transporting wealth, can be a proxy for commodity backing, which would be an "empirically verified" regression.

See also

References

  1. 1914 review by J.M. Keynes.
  2. Michael Hendricks (6 June 2013). "Reconciling the Regression Theorem with Bitcoin". Seth King. Retrieved 12 December 2014.

External links


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