IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-80148-6_10.html
   My bibliography  Save this book chapter

International or National Money?

In: The Economics of Friedrich Hayek

Author

Listed:
  • G. R. Steele

Abstract

Hayek draws no policy guidelines from the theoretical analysis that shows a causal linkage between bank credit creation and business fluctuations. Rather, bankers must judge the relative advantages and disadvantages of meeting new demands for bank credit. Varying opportunities emanating from the real economy cause changes in the demand for bank credit; but there should be no attempt to stabilise the volume of bank deposits, because ‘[t]he stability of the economic system would be obtained at the price of curbing economic progress’ (Hayek, 1933a, p. 191). Although it might incur forced saving, with the consequence of an unjust redistribution of income, economic progress should not be sacrificed. Although Hayek was confident that developments in monetary theory would shed light upon the problem of the trade-off between that injustice and economic progress, that confidence was undermined by a rival and influential analysis that originates in Keynes’s General Theory.

Suggested Citation

  • G. R. Steele, 2007. "International or National Money?," Palgrave Macmillan Books, in: The Economics of Friedrich Hayek, edition 0, chapter 10, pages 176-189, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-80148-6_10
    DOI: 10.1057/9780230801486_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:palchp:978-0-230-80148-6_10. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.