scholarly journals C. Menger’s theory of the value of money

2020 ◽  
Vol 2020 (3) ◽  
pp. 107-119
Author(s):  
Aliaksandr Kavaliou ◽  
Keyword(s):  
Austrian Economic ◽  
Functional Approach ◽  
Psychological Explanation ◽  
Monetary Theory ◽  
Value Change ◽  
Monetary Reform ◽  
Main Method ◽  
Circulation Research ◽  
Basic Assumptions ◽  
Value Of Money

The aim of the article is a complex presentation of C. Menger’s theory of the value of money. The main method was the content analysis of his little-known articles devoted both to monetary theory and to practical issues of monetary reform in Austria-Hungary. In accordance with existing classifications, Menger’s theory of money may be defined as evolutionary according to the criteria of origin, functional according to the criteria of the nature of value, and psychological according to the criteria of factors of value change. It has been demonstrated that Menger’s initial view of the source of the value of money in line with the substantial approach can be explained by combining it with an evolutionary approach to the origin of money and opposition to nominalism based on a rationalistic approach. Later, in the works of the 1890s, there is a shift towards functional approach, due, among other things, to the emergence of new economic phenomena. Menger’s denial of the mechanistic version of the quantitative theory of money as inconsistent with the basic assumptions of the analysis is shown. Determining the essence of money by its position in the national economy, formed by the subjective actions of people, creates the basis for a psychological explanation of the change in the value of money. The article analyzes the concepts of the inner and outer value of money introduced by Menger into science and the reasons for refusing to consider the idea of a constant outer value. Maintaining a stable inner value of money by regulating its quantity in circulation requires careful analytical and statistical efforts, and Menger warns against arbitrary active government intervention in the sphere of money circulation. Research prospects are seen in the planes of analyzing the influence of the approaches to the theory of money laid down by Menger on the subsequent theories of various schools and the phenomenon of the seeming duality of Menger’s approach as a factor of the bifurcation of the Austrian economic school.

scholarly journals Geldtheorie und -politik in Preußen Mitte des 18. Jahrhunderts

2020 ◽  
Vol 61 (1) ◽  
pp. 217-257
Author(s):  
Jan Greitens
Keyword(s):  
18Th Century ◽  
Economic Thought ◽  
Monetary Theory ◽  
Clear Understanding ◽  
Monetary System ◽  
Monetary Approach ◽  
History Of ◽  
Early Modern Era ◽  
Value Of Money ◽  
Modern Era

AbstractIn the history of economic thought, monetary theories in the Germanspeaking world of the early modern era are considered backward compared to the approaches in other European countries. This backwardness can be illustrated by two authors from the mid-18th century who were not only contemporaries but also successively in the service of Frederick II (“the Great”) of Prussia. The first is Johann Philipp Graumann, one of the 'projectors' of the 18th century. As master of the mints in Prussia, he developed a coin project, where he tried to implement a new monetary standard to promote trade, generate seigniorage income and implement the Prussian coins as a kind of a reserve currency. In his writings, he developed a typical mercantilistic monetary theory with a clear understanding of the mechanism in the balance of payments. But even when he tried to include credit instruments, he did not take banks or broader financial markets into account. The second thinker is Johann Heinrich Gottlob Justi, who took the opposite position concerning the coin project as well as in his theory. He defended a strictly metalistic monetary approach where the value of money is only based on the metal's value. While Graumann rejected the English coin system, Justi recommended its laws for countries without their own mines, because the sovereign should not misuse his right of coinage. For him, the monetary system had tobe reliable and stable to serve trade and economic development.

scholarly journals An Islamic monetary theory of value and equation of exchange: evidence from Egypt (696-1517)

Humanomics ◽  
2016 ◽  
Vol 32 (2) ◽  
pp. 121-150 ◽  
Author(s):  
Adam Abdullah
Keyword(s):  
Empirical Investigation ◽  
Commodity Prices ◽  
Secondary Data ◽  
Price Stability ◽  
Monetary Theory ◽  
Value Functions ◽  
Content Type ◽  
Theory Of Value ◽  
Value Of Money

Purpose The purpose of this research is to present an Islamic monetary theory of value by analyzing real prices and real money in terms of gold and silver in Egypt from 696 to 1517, a period of 821 years from the Umayyads to the Abbasids. Design/methodology/approach This paper adopts a quantitative empirical investigation derived from a full population of secondary data to deductively evaluate the measure and store of value functions of money, to affirm an Islamic monetary theory of value, which is also inductively researched through a qualitative interpretation of documentary and content analysis of Islamic and numismatic literature. Findings The Islamic monetary theory of value leads to an Islamic equation of exchange that reconfirms the outcome of this research, where a high value of money ensures low constant real prices over the long term. Research limitations/implications The findings are based on an empirical investigation involving a single price of wheat series as a reasonable proxy for changes in wholesale commodity prices generally, which was successfully adopted by other studies. Practical implications The significance for modern monetary policy is that monetary authorities should adopt an Islamic monetary theory of value to achieve genuine monetary and price stability. Social implications Through an Islamic equation of exchange, price stability would ensure real economic growth that protects wealth for holders of money due to a stable purchasing power, and combined with Islamic equity finance, more efficiency in allocating investible resources to increase gross domestic product and employment. Originality/value The Islamic monetary theory of value ensures that there is no transfer or confiscation of wealth through inflation, which would impart gains to the issuer due to the excessive supply of money in relation to demand.

J. Laurence Laughlin versus Irving Fisher on the quantity theory of money, 1894 to 1913

2020 ◽  
Vol 72 (4) ◽  
pp. 1032-1049
Author(s):  
Robert W Dimand
Keyword(s):  
Federal Reserve ◽  
Price Level ◽  
Monetary Theory ◽  
Monetary Reform ◽  
Quantity Theory ◽  
Monetary System ◽  
Long Run ◽  
Economic Association ◽  
The Us ◽  
The University

Abstract In the controversy leading to the Federal Reserve Act of 1913, J. Laurence Laughlin of the University of Chicago and Irving Fisher of Yale were the leading opponent and proponent, respectively, of the quantity theory of money as the theoretical basis for reorganizing the US monetary system. Laughlin identified the quantity theory with bimetallist claims that monetizing silver would have lasting real benefits. Laughlin offered a cost of production theory of the value of gold as an alternative to the quantity theory, while his students published empirical critiques of the quantity theory. Fisher upheld the quantity theory as explaining price movements while distancing the theory from assertions of long-run non-neutrality of money. Laughlin and Fisher vigorously debated monetary theory and monetary reform, notably at American Economic Association meetings. Their confrontations illuminate the monetary controversies preceding the Federal Reserve Act, which reflected the views of Laughlin and Willis (adviser to Congressman Carter Glass) while rejecting the mandate to stabilize the price level proposed by Senator Owen and his adviser Fisher.

scholarly journals THE INFLUENCE OF IRVING FISHER ON MILTON FRIEDMAN’S MONETARY ECONOMICS

2013 ◽  
Vol 35 (2) ◽  
pp. 153-177 ◽  
Author(s):  
MICHAEL D. BORDO ◽  
HUGH ROCKOFF
Keyword(s):  
Business Cycles ◽  
Phillips Curve ◽  
Monetary Economics ◽  
Building Blocks ◽  
Chicago School ◽  
Price Stability ◽  
Monetary Theory ◽  
Fisher Effect ◽  
Monetary Reform ◽  
The 1960S

This paper examines the influence of Irving Fisher’s writings on Milton Friedman’s work in monetary economics. We focus first on Fisher’s influences in monetary theory (the quantity theory of money, the Fisher effect, Gibson’s Paradox, the monetary theory of business cycles, and the Phillips Curve), and empirics (e.g., distributed lags.). Then we discuss Fisher and Friedman’s views on monetary policy and various schemes for monetary reform (the k% rule, freezing the monetary base, the compensated dollar, a mandate for price stability, 100% reserve money, and stamped money). Assessing the influence of an earlier economist’s writings on that of later scholars is a challenge. As a science progresses, the views of its earlier pioneers are absorbed in the weltanschauung. Fisher’s The Purchasing Power of Money as well as the work of Pigou and Marshall were the basic building blocks for later students of monetary economics. Thus, the Chicago School of the 1930s absorbed Fisher’s approach, and Friedman learned from them. However, in some salient aspects of Friedman’s work, we can clearly detect a major direct influence of Fisher’s writings on Friedman’s. Thus, for example, with the buildup of inflation in the 1960s, Friedman adopted the Fisher effect and Fisher’s empirical approach to inflationary expectations into his analysis. Therefore, Fisher’s influence on Friedman was both indirect through the Chicago School and direct. Regardless of the weight attached to the two influences, Fisher’s impact on Friedman was profound.

scholarly journals Geldreform als Weg aus der Krise?

2015 ◽  
Vol 45 (179) ◽  
Author(s):  
Beat Weber
Keyword(s):  
The State ◽  
Monetary Theory ◽  
System Reform ◽  
Monetary Reform ◽  
Hybrid Nature ◽  
Monetary System

Monetary reform proposals can be characterized by their position taking on two fundamental debates within monetary theory: What is the nature of money (credit or asset)? Who should issue money (the state or private entities)? In opting for a radical departure from the hybrid nature of the current monetary system, reform proposals suffer from a gap between far reaching legitimacy claims and neglected functionality problems in monetary governance.

Model for shaping urban mobility – system-functional approach

2018 ◽  
Vol 120 ◽  
pp. 471-480
Author(s):  
Renata Żochowska ◽  
Grzegorz Karoń
Keyword(s):  
Decision Making ◽  
Mobility Management ◽  
Decision Model ◽  
Functional Form ◽  
Functional Approach ◽  
Formal Description ◽  
Urban Mobility ◽  
Basic Assumptions ◽  
Mobility System ◽  
Decision Making Model

The article presents a decision-making model for shaping urban mobility in a system-functional form. First, the mobility management process was characterized. Next, a formal description of the basic assumptions of the decision-making model for urban mobility management and the architecture of the decision model in the form of an algorithm for selecting mobility actions were presented.

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