IDEAS home Printed from https://ideas.repec.org/p/wiw/wus005/2948.html
   My bibliography  Save this paper

L. Albert Hahn's Economic Theory of Bank Credit

Author

Listed:
  • Hagemann, Harald

Abstract

In the mid-1920s L. Albert Hahn's Economic Theory of Bank Credit (1920) had become one of the most influential and certainly the most controversial book on monetary theory in the German language area. Hahn wanted to overcome the orthodox view that every credit has to be financed by means of savings deposited by the banks. Banks are producers of credit which is not limited by the amount of saving. Capital was seen by Hahn as the result of credit creation and not of saving. Over time Hahn moderated some exaggerations of the first two editions of The Economic Theory of Bank Credit, such as the idea of a permanent boom. The paper also compares Hahn's views on the role and effects of credit with those of Schumpeter and investigates Hahn's claim to have anticipated essential ideas of Keynes' General Theory. (author's abstract)

Suggested Citation

  • Hagemann, Harald, 2010. "L. Albert Hahn's Economic Theory of Bank Credit," Department of Economics Working Paper Series 134, WU Vienna University of Economics and Business.
  • Handle: RePEc:wiw:wus005:2948
    as

    Download full text from publisher

    File URL: https://epub.wu.ac.at/2948/
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gstach, Dieter & Grandner, Thomas, 1998. "Restricted immigration in a two-sector economy," Department of Economics Working Paper Series 55, WU Vienna University of Economics and Business.
    2. Fabio Rumler, 1999. "Computable General Equilibrium Modeling, Numerical Simulations in a 2-Country Monetary General Equilibrium Model," Department of Economics Working Papers wuwp065, Vienna University of Economics and Business, Department of Economics.
    3. Wilfried Altzinger, 1998. "Austria's Foreign Direct Investment in Central and Eastern Europe: 'Supply Based' or 'Market Driven'?," Department of Economics Working Papers wuwp057, Vienna University of Economics and Business, Department of Economics.
    4. Marterbauer, Markus, 1993. "Europäische Währungsunion und Konsequenzen für die Kollektivvertragspolitik," Department of Economics Working Paper Series 17, WU Vienna University of Economics and Business.
    5. Hansjoerg Klausinger, 2000. "Walras' Law and the IS-LM Model. A Tale of Progress and Regress," Department of Economics Working Papers wuwp069, Vienna University of Economics and Business, Department of Economics.
    6. Pasquale Commendatore & Ingrid Kubin, "undated". "The dynamics of wages and employment in a model of monopolistic competition and efficient bargaining," Modeling, Computing, and Mastering Complexity 2003 03, Society for Computational Economics.
    7. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia, 2009. "Footloose Capital and Productive Public Services," Chapters, in: Neri Salvadori & Pasquale Commendatore & Massimo Tamberi (ed.), Geography, Structural Change and Economic Development, chapter 1, Edward Elgar Publishing.
    8. Gstach, Dieter, 2003. "A statistical framework for estimating output-specific efficiencies," Department of Economics Working Paper Series 83, WU Vienna University of Economics and Business.
    9. Stiassny, Alfred, 1993. "TVP - Ein Programm zur Schätzung von Modellen mit zeitvariierenden Parametern," Department of Economics Working Paper Series 22, WU Vienna University of Economics and Business.
    10. Grandner, Thomas, 2000. "A note on unionized firms' incentive to integrate vertically," Department of Economics Working Paper Series 70, WU Vienna University of Economics and Business.
    11. Kocher, Martin G. & Luptacik, Mikulas & Sutter, Matthias, 2006. "Measuring productivity of research in economics: A cross-country study using DEA," Socio-Economic Planning Sciences, Elsevier, vol. 40(4), pages 314-332, December.
    12. Bellak, Christian, 2000. "The investment development path of Austria," Department of Economics Working Paper Series 75, WU Vienna University of Economics and Business.
    13. Ragacs, Christian & Steinberger, Thomas & Zagler, Martin, 1998. "Growth theories and the persistence of output fluctuations. The case of Austria," Department of Economics Working Paper Series 60, WU Vienna University of Economics and Business.
    14. Wehinger, Gert D., 1997. "Exchange rate-based stabilization. Pleasant monetary dynamics?," Department of Economics Working Paper Series 50, WU Vienna University of Economics and Business.
    15. Özlem Onaran, 2007. "International financial markets and fragility in the Eastern Europe: "can it happen" here?," Department of Economics Working Papers wuwp108, Vienna University of Economics and Business, Department of Economics.
    16. Thomas Grandner, 1998. "Market Shares of Price Setting Firms and Trade Unions," Department of Economics Working Papers wuwp061, Vienna University of Economics and Business, Department of Economics.
    17. David E.W. Laidler, 2016. "The Golden Age of the Quantity Theory," Economics Books, Princeton University Press, edition 1, number 4959, April.
    18. Stockhammer, Engelbert, 1999. "Robinsonian and Kaleckian growth. An update on post-Keynesian growth theories," Department of Economics Working Paper Series 67, WU Vienna University of Economics and Business.
    19. Heise, Arne, 2000. "Theorie optimaler Lohnräume. Zur Lohnpolitik in der Europäischen Währungsunion," Department of Economics Working Paper Series 73, WU Vienna University of Economics and Business.
    20. Arne Heise, 2000. "Postkeynesianische Beschäftigungstheorie. Einige Prinzipielle Überlegungen," Department of Economics Working Papers wuwp072, Vienna University of Economics and Business, Department of Economics.
    21. Dieter Gstach, 2003. "A Statistical Framework for Estimating Output-Specific Efficiencies," Department of Economics Working Papers wuwp083, Vienna University of Economics and Business, Department of Economics.
    22. Ragacs, Christian, 1993. "Employment, productivity, output and minimum wage in Austria: a time series analysis," Department of Economics Working Paper Series 21, WU Vienna University of Economics and Business.
    23. Grandner, Thomas, 1996. "Is wage-leadership an instrument to coordinate unions' wage-policy? The case of imperfect product markets," Department of Economics Working Paper Series 42, WU Vienna University of Economics and Business.
    24. Klausinger, Hansjörg, 2002. "Walras' Law in stochastic macro models. The example of the optimal monetary instrument," Department of Economics Working Paper Series 82, WU Vienna University of Economics and Business.
    25. Muriel Dal-Pont Legrand & Hagemann Harald, 2007. "Business cycles in Juglar and Schumpeter," Post-Print halshs-00454505, HAL.
    26. Grandner, Thomas, 2000. "Optimal contracts for vertically connected, unionized duopolies," Department of Economics Working Paper Series 71, WU Vienna University of Economics and Business.
    27. Nowotny, Ewald, 1991. "The Austrian Social Partnership and Democracy," Department of Economics Working Paper Series 10, WU Vienna University of Economics and Business.
    28. Dieter Gstach & Andrew Somers & Susanne Warning, 2003. "Output specific efficiencies: The case of UK private secondary schools," Department of Economics Working Papers wuwp084, Vienna University of Economics and Business, Department of Economics.
    29. Ragacs, Christian, 2002. "Minimum wages, human capital, employment and growth," Department of Economics Working Paper Series 81, WU Vienna University of Economics and Business.
    30. Heise, Arne, 2001. "Das Konzept einer nachhaltigen Finanzpolitik aus heterodoxer Sicht. Ein Diskussionsbeitrag," Department of Economics Working Paper Series 76, WU Vienna University of Economics and Business.
    31. Gstach, Dieter, 1998. "Technical efficiency in noisy multi-output settings," Department of Economics Working Paper Series 59, WU Vienna University of Economics and Business.
    32. Eckhard Hein & Engelbert Stockhammer, 2010. "Macroeconomic Policy Mix, Employment and Inflation in a Post-Keynesian Alternative to the New Consensus Model," Review of Political Economy, Taylor & Francis Journals, vol. 22(3), pages 317-354.
    33. Harald Hagemann, 2003. "Schumpeter's early contributions on crises theory and business-cycle theory," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 11(1), pages 47-67.
    34. Ragacs, Christian & Zagler, Martin, 1997. "Economic policy in a model of endogenous growth," Department of Economics Working Paper Series 53, WU Vienna University of Economics and Business.
    35. Stiassny, Alfred & Koren, Stephan, 1992. "The Temporal Causality between Government Taxes and Spending," Department of Economics Working Paper Series 14, WU Vienna University of Economics and Business.
    36. Laidler, David E W & Stadler, George W, 1998. "Monetary Explanations of the Weimar Republic's Hyperinflation: Some Neglected Contributions in Contemporary German Literature," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(4), pages 816-831, November.
    37. Hansjoerg Klausinger, 1999. "The Stability of Full Employment. A Reconstruction of Chapter 19-Keynesianism," Department of Economics Working Papers wuwp063, Vienna University of Economics and Business, Department of Economics.
    38. Thomas Grandner, 2000. "Optimal Contracts for Vertically Connected, Unionized Duopolies," Department of Economics Working Papers wuwp071, Vienna University of Economics and Business, Department of Economics.
    39. Gstach, Dieter, 1996. "A new approach to stochastic frontier estimation: DEA+," Department of Economics Working Paper Series 39, WU Vienna University of Economics and Business.
    40. Grandner, Thomas, 1998. "Market shares of price setting firms and trade unions," Department of Economics Working Paper Series 61, WU Vienna University of Economics and Business.
    41. Martin Zagler, 1996. "Long-Run Monetary Non-Neutrality in a Model of Endogenous Growth," Department of Economics Working Papers wuwp037, Vienna University of Economics and Business, Department of Economics.
    42. Engelbert Stockhammer, 2000. "Explaining European Unemployment: Testing the NAIRU Theory and a Keynesian Approach," Department of Economics Working Papers wuwp068, Vienna University of Economics and Business, Department of Economics.
    43. Gerhard Munduch & Alexander Pfister & Leopold Sögner & Alfred Stiassny, 2002. "Estimating Marginal Costs for the Austrian Railway System," Department of Economics Working Papers wuwp078, Vienna University of Economics and Business, Department of Economics.
    44. Dieter Gstach, 1998. "Small Sample Performance of Two Approaches to Technical Efficiency Estimation with Multiple Outputs," Department of Economics Working Papers wuwp058, Vienna University of Economics and Business, Department of Economics.
    45. Gstach, Dieter, 1993. "Scale Efficiency: Where Data Envelopment Analysis Outperforms Stochastic Production Function Estimation," Department of Economics Working Paper Series 23, WU Vienna University of Economics and Business.
    46. Dieter Gstach & Thomas Grandner, 1998. "Restricted Immigration in a Two-Sector Economy," Department of Economics Working Papers wuwp055, Vienna University of Economics and Business, Department of Economics.
    47. Martin Zagler, 2011. "Endogenous Growth, Efficiency Wages, and Persistent Unemployment," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 34-42, April.
    48. Dockner, Engelbert J, 1992. "A Dynamic Theory of Conjectural Variations," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 377-395, December.
    49. Robert Leeson, 1997. "Influence (or The Lack of It) in the Economics Profession: The Case of Lucien Albert Hahn," History of Political Economy, Duke University Press, vol. 29(4), pages 635-638, Winter.
    50. Gstach, Dieter, 1998. "Small sample performance of two approaches to technical efficiency estimation in noisy multiple output environments," Department of Economics Working Paper Series 58, WU Vienna University of Economics and Business.
    51. Thomas Grandner, 2007. "Product differentiation in a linear city and wage bargaining," Department of Economics Working Papers wuwp109, Vienna University of Economics and Business, Department of Economics.
    52. Munduch, Gerhard & Pfister, Alexander & Sögner, Leopold & Stiassny, Alfred, 2002. "Estimating marginal costs for the Austrian railway system," Department of Economics Working Paper Series 78, WU Vienna University of Economics and Business.
    53. Thomas Grandner, 1996. "Is Wage-Leadership an Instrument to Coordinate Union's Wage-Policy? The Case of Imperfect Product Markets," Department of Economics Working Papers wuwp042, Vienna University of Economics and Business, Department of Economics.
    54. Dieter Gstach, 1998. "Technical Efficiency in Noisy Multi-Output Settings," Department of Economics Working Papers wuwp059, Vienna University of Economics and Business, Department of Economics.
    55. Dieter Gstach, 1996. "A new approach to stochastic frontier estimation: DEA+," Department of Economics Working Papers wuwp039, Vienna University of Economics and Business, Department of Economics.
    56. Bellak, Christian & Cantwell, John, 1995. "Measuring the Importance of International Production: The Re-estimation of Foreign Direct Investment at Current Values," Department of Economics Working Paper Series 30, WU Vienna University of Economics and Business.
    57. Marterbauer, Markus, 1991. "Die Rolle der Fiskalpolitik im schwedischen Wohlfahrtsstaat," Department of Economics Working Paper Series 6, WU Vienna University of Economics and Business.
    58. Pichler, Eva, 1991. "Cost-Sharing of General and Specific Training with Depreciation of Human Capital," Department of Economics Working Paper Series 7, WU Vienna University of Economics and Business.
    59. Gstach, Dieter & Somers, Andrew & Warning, Susanne, 2003. "Output specific efficiencies. The case of UK private secondary schools," Department of Economics Working Paper Series 84, WU Vienna University of Economics and Business.
    60. Harald Katzmair, 1999. "Der Modellbegriff in den Sozialwissenschaften. Zum Programm einer kritischen Soziologik," Department of Economics Working Papers wuwp064, Vienna University of Economics and Business, Department of Economics.
    61. Grandner, Thomas, 2007. "Product differentiation in a linear city and wage bargaining," Department of Economics Working Paper Series 109, WU Vienna University of Economics and Business.
    62. Garvy, George, 1975. "Keynes and the Economic Activists of Pre-Hitler Germany," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 391-405, April.
    63. Thomas Grandner, 2000. "A Note on Unionized Firms' Incentive to Integrate Vertically," Department of Economics Working Papers wuwp070, Vienna University of Economics and Business, Department of Economics.
    64. Ragacs, Christian, 1993. "Minimum Wages in Austria: Estimation of Employment Functions," Department of Economics Working Paper Series 20, WU Vienna University of Economics and Business.
    65. Thomas Grandner, 1997. "Territoriale Evolution von Kooperation in einem Gefangenendilemma," Department of Economics Working Papers wuwp045, Vienna University of Economics and Business, Department of Economics.
    66. Hansjoerg Klausinger, 1997. "Die Alternativen zur Deflationspolitik Brünings im Lichte zeitgenössischer Kritik," Department of Economics Working Papers wuwp049, Vienna University of Economics and Business, Department of Economics.
    67. Altzinger, Wilfried, 1995. "Beschäftigungseffekte des österreichischen Osthandels. 1989 - 1994," Department of Economics Working Paper Series 34, WU Vienna University of Economics and Business.
    68. Wilfried Altzinger, 1996. "Beschäftigungseffekte des österreichischen Osthandels," Department of Economics Working Papers wuwp034, Vienna University of Economics and Business, Department of Economics.
    69. Katzmair, Harald, 1999. "Der Modellbegriff in den Sozialwissenschaften. Zum Programm einer kritischen Sozio-Logik," Department of Economics Working Paper Series 64, WU Vienna University of Economics and Business.
    70. Trautwein, Hans-Michael, 2000. "The Credit View, Old and New," Journal of Economic Surveys, Wiley Blackwell, vol. 14(2), pages 155-189, April.
    71. Scharmer, Felicitas, 1993. "The Validity Issue in Applied General Equilibrium Tax Models," Department of Economics Working Paper Series 19, WU Vienna University of Economics and Business.
    72. Donald J. Boudreaux & George A. Selgin, 1990. "L. Albert Hahn: A Precursor of Keynesianism and the Monetarist Counterrevolution," History of Political Economy, Duke University Press, vol. 22(2), pages 261-279, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Peneder & Andreas Resch, 2015. "Schumpeter and venture finance: radical theorist, broke investor, and enigmatic teacher," Industrial and Corporate Change, Oxford University Press, vol. 24(6), pages 1315-1352.
    2. Emilio Ocampo, 2020. "MMT: Modern Monetary Theory or Magical Monetary Thinking? The Empirical Evidence," CEMA Working Papers: Serie Documentos de Trabajo. 762, Universidad del CEMA.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gerlinde Fellner & Matthias Sutter, 2009. "Causes, Consequences, and Cures of Myopic Loss Aversion – An Experimental Investigation," Economic Journal, Royal Economic Society, vol. 119(537), pages 900-916, April.
    2. Aleksandra Riedl & Silvia Rocha-Akis, 2008. "Testing the tax competition theory: How elastic are national tax bases in Western Europe?," Working Papers 142, Oesterreichische Nationalbank (Austrian Central Bank).
    3. Riedl, Aleksandra & Rocha-Akis, Silvia, 2007. "Testing the tax competition theory: How elastic are national tax bases in western Europe?," Department of Economics Working Paper Series 112, WU Vienna University of Economics and Business.
    4. Engelbert Stockhammer & Paul Ramskogler, 2009. "Post-Keynesian economics How to move forward," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 6(2), pages 227-246.
    5. Theresa Grafeneder-Weissteiner & Klaus Prettner, 2009. "Agglomeration and population ageing in a two region model of exogenous growth," VID Working Papers 0901, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    6. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia, 2009. "Footloose Capital and Productive Public Services," Chapters, in: Neri Salvadori & Pasquale Commendatore & Massimo Tamberi (ed.), Geography, Structural Change and Economic Development, chapter 1, Edward Elgar Publishing.
    7. Smet, Koen, 2007. "Stuck in the middle? The structure of trade between South Africa and its major trading partners," Department of Economics Working Paper Series 115, WU Vienna University of Economics and Business.
    8. Eckhard Hein, 2010. "Shareholder Value Orientation, Distribution And Growth—Short‐ And Medium‐Run Effects In A Kaleckian Model," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 302-332, May.
    9. Engelbert Stockhammer & Lucas Grafl, 2010. "Financial Uncertainty and Business Investment," Review of Political Economy, Taylor & Francis Journals, vol. 22(4), pages 551-568.
    10. Grafeneder-Weissteiner, Theresa & Prettner, Klaus, 2010. "Agglomeration processes in aging societies," Department of Economics Working Paper Series 131, WU Vienna University of Economics and Business.
    11. Figerl, Jürgen & Grandner, Thomas, 2008. "Job quality and wages in duopsony," Department of Economics Working Paper Series 121, WU Vienna University of Economics and Business.
    12. Grafeneder-Weissteiner, Theresa, 2010. "Demographic change, growth and agglomeration," Department of Economics Working Paper Series 132, WU Vienna University of Economics and Business.
    13. Engelbert Stockhammer & Paul Ramskogler, 2008. "Uncertainty and Exploitation in History," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(1), pages 175-194, March.
    14. Özlem Onaran, 2007. "International financial markets and fragility in the Eastern Europe: "can it happen" here?," Department of Economics Working Papers wuwp108, Vienna University of Economics and Business, Department of Economics.
    15. Annemarie Steidl & Engelbert Stockhammer, 2007. "Coming and leaving. Internal mobility in late Imperial Austria," Department of Economics Working Papers wuwp107, Vienna University of Economics and Business, Department of Economics.
    16. Grandner, Thomas, 2007. "Product differentiation in a linear city and wage bargaining," Department of Economics Working Paper Series 109, WU Vienna University of Economics and Business.
    17. Silvia Rocha-Akis, 2006. "Labour tax policies and strategic offshoring under unionised oligopoly," Department of Economics Working Papers wuwp099, Vienna University of Economics and Business, Department of Economics.
    18. Paul Ramskogler, 2007. "Uncertainty, market power and credit rationing," Department of Economics Working Papers wuwp105, Vienna University of Economics and Business, Department of Economics.
    19. Harald Badinger & Ingrid Kubin, 2007. "Vom kurzfristigen zum mittelfristigen Gleichgewicht in einer offenen Volkswirtschaft unter fixen und flexiblen Wechselkursen," Department of Economics Working Papers wuwp101, Vienna University of Economics and Business, Department of Economics.
    20. Currie, Martin & Kubin, Ingrid, 2005. "Fixed price dynamics versus flexible price dynamics," Department of Economics Working Paper Series 89, WU Vienna University of Economics and Business.

    More about this item

    Keywords

    bank credit; business-cycle theory; Hahn; Albert ; Kredittheorie; Konjunkturtheorie;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wus005:2948. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://epub.wu.ac.at .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: WU Library (email available below). General contact details of provider: http://epub.wu.ac.at .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.