Die Theorie der Volkswirtschaft

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Monograph

Identifikator:: 892769734

URN:: urn:nbn:de:zbw-retromon-76808

Document type:: Monograph

Author:: Maslov, Petr http://d-nb.info/gnd/123876184

Title:: Die Theorie der Volkswirtschaft

Place of publication:: Leipzig

Publisher:: Verlag von Arthur Kade

Year of publication:: 1912

Scope:: 1 Online-Ressource (VIII, 293 Seiten)

Collection:: Economics Books

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122 MODERN MONETARY SYSTEMS received by individuals in the course of previous trans- actions. This money, representing as it does the value of goods and services previously supplied, ought, it seems, to enable an equivalent volume of goods and services to be produced without disturbing the market, and this putting into circulation of money is the proper function of credit. But as the credit machinery is not perfect enough to allow all the reserves of money to be mobilised as soon as they are created, it is possible to compensate for that part which lies idle by making uncovered note issues, i.e., by issuing supplementary money.! And so we see how an increase in the amount of money in circulation will con- tribute to increasing production and therefore the supply of goods. And the cumulative effect of these observations is to confirm the statement already made that variations in the amount of money will operate in two contrary directions ; an increase in the circulation tending at first to provoke a rise, by increasing the demand for goods, and thereupon becoming a factor in a fall in prices through its influence on production and supply. But the latter influence is less rapid and can only make itself felt in so far as there are already in existence latent resources capable of being put to better and more immediate use. Thus we find on the whole that while the Quantity Theory is based on the observations of actual experience, this observation has been confined to a closed market at a given moment, and with a stock of money which is at once used up in the purchase of a limited stock of goods ; a market which is, as it were, stationary, so that supply can never adapt itself to demand; but the classical school extend the theory to markets which receive a flow of goods, continually renewed, to a whole country, and to the world at large in its full activity. Lastly, it only takes into account one of the two influences which may be exercised by variations in the amount of money, i.c., the effect which they have through consumers and not the two successive effects, one tending to increase demand, the 1See B. Nogaro, “Traité Elémentaire d’économie politique,” “Le crédit,” Sect. 111, Ch. 1, § 3.

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Contents: Modern monetary systems

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