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The (quantity) theory of money and credit

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  • Anthony Evans
  • Robert Thorpe

Abstract

The Theory of Money and Credit (1912) is rightly regarded as a seminal book in the development of the Austrian school approach to monetary theory. We argue that Mises’ understanding of the equation of exchange differs from both of the conventional textbook versions, and warrants recognition as being a distinct contribution. After supporting this claim we discuss it in light of expectations, monetary regimes, and the microfoundations of the quantity theory. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Anthony Evans & Robert Thorpe, 2013. "The (quantity) theory of money and credit," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(4), pages 463-481, December.
    • Handle: RePEc:kap:revaec:v:26:y:2013:i:4:p:463-481
    DOI: 10.1007/s11138-013-0226-8
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    References listed on IDEAS

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    1. Egger, John B, 1995. "Arthur Marget in the Austrian Tradition of the Theory of Money," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 8(2), pages 3-23.
    2. A. C. Pigou, 1917. "The Value of Money," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 32(1), pages 38-65.
    3. Mark Skousen, 2010. "Gross Domestic Expenditures (GDE): the Need for a New National Aggregate Statistic," UCL SSEES Economics and Business working paper series 113, UCL School of Slavonic and East European Studies (SSEES).
    4. Mark Blaug & Walter Eltis & Dennis O’Brien & Don Patinkin & Robert Skidelsky & Geoffrey Wood, 1995. "The Quantity Theory of Money," Books, Edward Elgar Publishing, number 73.
    5. Horwitz, Steven, 2003. "The Costs of Inflation Revisited," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(1), pages 77-95, March.
    6. Thomas M. Humphrey, 1973. "Empirical Tests of the Quantity Theory of Money in the United States, 1900–1930," History of Political Economy, Duke University Press, vol. 5(2), pages 285-316, Fall.
    7. Lawrence H. White, 2008. "Did Hayek and Robbins Deepen the Great Depression?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(4), pages 751-768, June.
    8. Thomas M. Humphrey, 1974. "The quantity theory of money : its historical evolution and role in policy debates," Economic Review, Federal Reserve Bank of Richmond, vol. 60(May), pages 2-19.
    9. Steven Horwitz, 1994. "Complementary Non-Quantity Theory Approaches to Money: Hilferding's Finance Capital and Free-Banking Theory," History of Political Economy, Duke University Press, vol. 26(2), pages 221-238, Summer.
    10. Horwitz Steven, 1990. "A Subjectivist Approach to the Demand for Money," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 1(4), pages 1-14, December.
    11. Wagner, Richard E, 1999. "Austrian Cycle Theory: Saving the Wheat While Discarding the Chaff," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 12(1), pages 65-80.
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    More about this item

    Keywords

    Demand for money; Expectations; Quantity theory; Monetary theory; B53; E41; E42; E58;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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