THEORY OF MONEY AND CREDIT, THE (Lib Works Ludwig Von Mises PB)

THEORY OF MONEY AND CREDIT, THE (Lib Works Ludwig Von Mises PB)

Product Description

In 1912, when Mises, at age thirty-one, wrote this landmark book, no monetary theory could be described as both securely founded on economic reality and properly incorporated into an analysis of the entire economic system. "The Theory of Money and Credit" opened new vistas. It integrated monetary theory into the main body of economic analysis for the first time, providing fresh new insights into the nature of money and its role in the economy. As the well-known "Austrian" economist Rothbard writes in his new foreword: "This book performed the mighty feat of integrating monetary with micro theory, of building monetary theory upon the individualistic foundations of general economic analysis."
Rate Points :5.0
Binding :Paperback
Label :Liberty Fund Inc.
Manufacturer :Liberty Fund Inc.
ProductGroup :Book
Studio :Liberty Fund Inc.
Publisher :Liberty Fund Inc.
EAN :9780913966716
Price :$12.00USD
Lowest Price :$9.12USD
Customer ReviewsThe Best Book on Money & Credit Ever Written? ... Possibly!
Rating Point :5 Helpful Point :11
Murray Newton Rothbard has been quoted as saying this book is THE best book ever written on Money & Credit. So having found Rothbards writings to be outstanding in their own right, I moved on to this Mises classic!

The first thing to note is that this book was first published in 1912 and in German, and although the translation has been accomplished superbly, the style of writing has somewhat of an antequated feel to it not quite the same free flowing prose you get with Rothbard. Once you get into the feel of it though, this in no way detracts from your understanding of the theory presented.

It has an excellent new Foreward by Rothbard himself, extensive footnoting and index and is hardbound beautifully by the Liberty Fund Press, with dust jacket. There is also a nice Appendix: On The Classification of Monetary Theories, that is very useful and informative.

The book itself is divided into four main Parts:
Part One: The Nature of Money.
Part Two: The Value of Money.
Part Three: Money and Banking.
Part Four: Monetary Reconstruction.(This part was added in 1952).

For me the book really took on a story of two halves. In the first half of the book, Parts 1 & 2, the bulk of the theory is really laid out. It can be slow going as it is extremely in depth but I highly recommend you stick with it as this pays off in the second half of the book!

In Part 3 Mises really starts putting flesh onto the theory when we get into Money & Banking proper with discussion of demand for money, credit, fiduciary paper, rate of interest etc. But towards the end in Chapters 19 & 20 things get MUCH more interesting as equilibrium rates and interest are discussed in detail and he finally talks about gold, the gold standard and banking freedom.

Part 4 is where my heart lies. Here we have the discussion of the principles of sound money versus contemporary currency systems. Theres then an excellent discourse on the Return to Sound Money, ie the Classical Gold Standard.

The second half of this wonderful book certainly flowed better for me, but that may also be just because I am more of an investment manager/trader and less of an economist! You feel like you have had Mises teaching you in fine detail and that he has left no stone unturned in your understanding. Mises doesnt read as easily as the prose of Rothbard but that does not detract from the excellence of the material. Superb!

It really IS a truly outstanding work and if not the best book ever written on the subject, it surely has to be at the very least, one of the very best, and as such is certainly a "must-read"!!!

This wonderful, beautifully bound, classic is an absolute "steal" at $20. I still cannot believe it is sold for so little. My recommendation is to buy it while it is still available in this beautiful hardbound edition!

Enjoy!

Breaking Down the Monetary Dichotomy
Rating Point :5 Helpful Point :6
Von Mises "The Theory of Money and Credit" is a great work in theoretical economics. Its key insight is that money has an influence on the real economy.

Monetary financing of deficits leads to inflation, but this inflation is never proportional, that is variations in the money supply produce variations in relative prices and therefore have distributional consequences.

MV = PT is an identity. The V reflects the money demand of individuals for whom a $ has a subjective value. What happens to PT is dependent on who how the new money will ripple through the economic system. Every change in the amount of money is different. Apart from subjective factors the velocity of circulation will depend on trends in population growth, the division of labour and financial innovation all of these tending to accelerate it over time.

A key price in any economy is the real interest rate. Within a stable monetary framework these would reflect time preference and the (perceived) profitability of investments. By artificially reducing the rate of interest investment booms are provoked by making longer processes of production seem more profitable than they are and when finally because of a intolerantly high rate of inflation the monetary growth is halted a sharp recession occurs, in which firms go bust and the some investments are liquidated. Hence business cycles.

In essence it a manifesto for sound-money which in Mises view amounts to adopting the gold standard. Inflationary deficit finance is dishonest and arbitrary on peoples incomes and should be replaced by explicit taxation.

Expertly published for the Kindle
Rating Point :5 Helpful Point :0
The edition of "The Theory of Money and Credit" from Signalman Publishing was specifically formatted and published for the Kindle. This specialized version enhances the readability and allows the reader to better focus on and understand the thoughts of von Mises. The Signalman edition will help students navigate through the text using the hyperlinked Table of Contents, unlike the Evergreen edition, which was not formatted specifically for the Kindle.

Weighty, Excellent
Rating Point :4 Helpful Point :2
This is a transformative work by von Mises. In the short time since I began reading I have come to a deeper understanding and appreciate the function and nature of money.

This is NOT light reading, but all the same it is fascinating. I found myself wanting to be back in school again, for no other reason than to have a professor and classmates to explore these ideas with, and to better develop my own understanding of the subject.

I have only two complaints, neither of which might really qualify as a complaint, since the original was written in German these is to be expected: first, most of the citations refer to the original German works. This makes it difficult for the English reader to cross-check citations and expand the reading list. However, thanks to the magic of Amazon, many of the cited authors are available in English. Second, von Mises assumes a very high level of understanding from his readers. Many of his ideas are built upon the work of others, and generally I found the background explanation a bit lacking (hence my want for a classroom environment). In all fairness, this book is so weighty that if he had ventured to give appropriate background for each element of support, the publishers might have been compelled to split the work into multiple volumes. The author rightly expects his readers to achieve a deep understanding of each supporting subject and and to research its origins on their own.

The Genesis of Modern Austrian Economics
Rating Point :5 Helpful Point :11
The Theory of Money and Credit is the foundation of modern Austrian Economics. The central contribution of this book is its application of marginal utility theory to money. Mises takes a micro-analytic approach to money that differs from the Hume-Fischer-Friedman Quantity Theory significantly. Of course there is some truth in the Quantity Theory. The Quantity Theory also teaches some lessons against inflation.

Mises set the groundwork for Austrian Business Cycle theory, as later developed by Hayek and Garrison. Both the Quantity Theory and the Mises-Hayek theory of trade cycles point to the same root cause: inflation. However, the Mises-Hayek theory explains trade cycles in terms of intertemporal dis-coordination. Hayek owes his Nobel Prize the groundbreaking work of Mises.

The Theory of Money and Credit also served as the basis for the calculation critique of socialism. Mises began to see the significance of monetary calculation in this book. The Austrian theories of the trade cycle and monetary calculation are the two main lines of modern Austrian research. These were the two critical debates of the Interwar Years. Also, Mises formulated his Regression Theorem in this book. Without this book, the modern Austrian paradigm would differ beyond recognition. Anyone who wants to learn Austrian economics should read this book.

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