Treatise on Money

Description

Together with John Maynard Keynes and Milton Friedman, Joseph Schumpeter is regarded as one of the three greatest economists of the 20th century. And yet, his actual economic writing has remained something of an enigma. Capitalism, Socialism, and Democracy, his best-known work, was also an unscientific throw-off in his view. His major economic works - The Theory of Economic Development and Business Cycles - have been misunderstood and underappreciated. What has not been realized is that key elements of the Schumpeterian system have hitherto gone missing. Clues to that system were contained in his magisterial History of Economic Analysis, but the full-orbed outworking was contained in his unpublished German manuscript on money and banking. Now published in English translation, the Treatise on Money provides the key to understanding Schumpeter's system. It shows that Schumpeter's famous emphasis on 'creative destruction' is a more complex phenomenon than is popularly understood: for the monetary component, neglected as a matter of course, actually plays a crucial role in the process. Furthermore, the Treatise provides an understanding of the workings of money, banking, and money and capital markets, that are supremely relevant in the light of current monetary and fiscal policy crises. This present volume is therefore an indispensable contribution to revealing the true Schumpeter to the English-speaking world. Orientation by Fritz Karl Mann.. xi......Page 9 Epistemological and methodological goals. xii......Page 10 The Money Circular Flow and the Economic Settlement Process. xviii......Page 14 The Dialectic of Money.. xxiii......Page 18 About the Provenance of the Manuscript. xxx......Page 24 Introduction to the English edition.. xxxiii......Page 27 Notes on the Translation.. xxxix......Page 32 Monetary Policy in Context. 1......Page 34 The Limits of Monetary Policy.. 4......Page 37 The Three Currency Ideals. 7......Page 39 Deflation.. 7......Page 40 Stability.. 9......Page 41 How to Theorize About Money.. 13......Page 44 Historical Versus Logical Priority.. 17......Page 47 Exploring the History of Money.. 19......Page 49 Outline of the Development of the Doctrine of Money.. 41......Page 67 Monetary Theory in the Ancient World.. 42......Page 68 Monetary Theory in the Medieval Period.. 44......Page 69 Monetary Theory in the Early Modern Period.. 48......Page 73 Mercantilism and Monetary Theory.. 59......Page 82 Ricardo’s Achievement. 65......Page 86 The Contemporary State of Affairs. 78......Page 93 Germany and the Influence of Knapp.. 86......Page 99 The Economic Account in the Socialist Commonwealth.. 91......Page 103 A Simple Model 95......Page 106 Adding Consumer Goods to the Mix.. 98......Page 108 Adding Cost Factors to the Mix.. 102......Page 111 The Problem of Capital Accounting.. 105......Page 114 The Common Denominator of Capitalism and Socialism.... 109......Page 117 The Capitalist Economic Process. 113......Page 120 The Circular Flow... 114......Page 121 The Production Process in the Circular Flow... 117......Page 123 Stretching the Boundaries of the Model 121......Page 126 Development as the Driving Force of Business Cycles. 124......Page 128 External Disturbances. 127......Page 130 The Economy-Wide Ledger. 131......Page 133 The Current Account as the Basic Concept of Monetary Doctrine. 132......Page 134 The Household as Alpha and Omega of the Economic Process. 135......Page 136 Household income. 137......Page 137 Household expenses. 141......Page 141