A Treatise on Currency and Banking (LvMI)

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Amazon Rapids Fun stories for kids on the go. They invest into capital goods even though the necessary savings to produce those capital goods are not existent, causing a bad resource allocation in the economy. The projects that the entrepreneurs invested in may not be profitable if the interest rate had not been artificially reduced.

The prices for original means of production increase dramatically because entrepreneurs compete for the small amount of existing means of production small because there were no savings to back up the provision of those means. This inflationary process gets stronger over time so that long-lasting projects far exceed their budgets.

Money, Bank Credit, and Economic Cycles

This increases their purchasing power and the demand for consumer goods. The prices for original means of production rise less quickly. Entrepreneurs thus rethink their initial investment strategy and shift investments to stages closer to consumption. The over-proportional increase of consumer good prices decreases the real prices of original means of production esp.

This causes a drop in demand for capital goods, decreasing the accounting profits of the stages furthest from consumption.

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Capital is shifted from the stages furthest from consumption to the stages closest to consumption. This adjustment is accompanied by high costs. Capital becomes non-convertible to a certain extent see also pp. Some projects cannot be completed, leaving society with capital that is now worth less than the initial purchase value. Crises seemingly prove that state interventions are necessary, but those interventions only pave the way for the next crisis p.

Such growth is a sign of credit expansion unbacked by real saving. The shift from socialism to a market economy can be compared to the adjustments that are necessary after an economic crisis. The lack of homogeneity makes this an impossible sum. It modifies the structure of relative prices of goods and services because it is injected into the economy in a sequential manner and at various specific points via public expenditure, credit expansion, or the discovery of new gold reserves in particular places.

Thus begins a process of income redistributions in which the first to receive the monetary units benefit from the situation at the expense of all other economic agents, who find themselves purchasing goods and services at rising prices before any of the newly-created monetary units reach their pockets.

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Jun 16, Stephen rated it it was amazing. This is one of the best books on any subject I've ever read. Completely lays out and modernizes the Austro-libertarian perspective on the legal foundations or lack thereof of fractional reserve banking, as well as the micro and macroeconomic implications of its implementation. This leads the reader into the clearest and most comprehensive exposition of the Austrian Business Cycle Theory availaible.

Next, the author gives insightful critiques of the major contradicting schools of econo This is one of the best books on any subject I've ever read. Next, the author gives insightful critiques of the major contradicting schools of economic thought - the chicagoite monetarists and the Keynesians.

A Treatise On Currency and Banking: Condy Raguet: leondumoulin.nl: Books

I cannot recommend this book highly enough to anyone interested in banking, legal theory, economic theory, economic history, or modern macro issues. Dec 26, Hendrik Vermuyten rated it it was amazing. De Nederlandstalige versie "Geld, krediet en crisis" is zeer vlot geschreven. De auteur geeft een uitdagende alternatieve visie op de banksector. Het boek combineert juridische en economische theorie met historische voorbeelden die de theorie illustreren. Mar 09, Mark rated it really liked it. In depth defense of the Austrian economics theory of banking and the business cycle focusing on the problems caused by artificial credit expansion, fiat currency, and fractional reserve banking.

All other things being equal This was the most illuminating book on the subject of banking and the Austrian perspective. But it is no easy book, The author's most cited thinkers are Hayek, Mises and Rothbard and it would not be a bad idea to have read some works from all of them.

What differentiates this book from others on this subject is that is starts with a clear affirmation of legal issues. Modern banking and fractional reserve must be treated as a multi disciplinary issue between the stu All other things being equal Modern banking and fractional reserve must be treated as a multi disciplinary issue between the study of law and political economy.

Thus the modern practice of fractional reserve is a fraud that brings misery ans suffering to society Aug 17, Adamant rated it it was amazing. The chapters on Austrian economics are sublime and though I am not an adherent of his ideas I have an admiration for the author for doing his best at exposing Austrian economics in the way that Mises would approve.

This is the best book on ABCT period. Maybe because of that babbling buffoon Rothbard. Jun 13, Karl rated it it was amazing Shelves: Read for an independent study on Austrian business cycle theory. Good introduction to Austrian business cycle theory and various free-market perspectives on banking theory. The only thing I would change is to make the graphs color, and add more description. Strap yourself in and make a pot of coffee. You're going to be here for a while, but it's worth it.

This is, quite simply, the most comprehensive treatise on its titular subject matter I've read. Also includes very helpful critiques of the theories from other schools of economic thought the view on offer here is Austrian. I'm tempted to take off a star for repetition, because the mutuum vs. What makes this book different, is Ludwig is a strict gold standard advocate. In the case of fiat money vs gold, Ludwig would argue, that with Fiat money, which loses its value, those savers will demand a higher rate of interest, or will simply spend more of their money on anything of value.

He also carries forth a very strong argument for a gold standard in the era of to This was when the farmers were losing their land to the strictness of the gold standard. According to William Greider in his previously mentioned book, no new gold was discovered in this era, which made it very difficult on the farmers, they wanted to be able to pay their debt in silver at a fixed price.

Ludwig argues that a fixed price for silver cannot work, only a market price can work. If an ounce of gold is worth 30 of silver, and the government fixes it at As Gresham would say bad money drives good out. These are just two of the Hallmarks, of this book. Ludwig is very detailed in his work. A third hallmark would be his central theory. The monetary policy of a nation is affected by its objective exchange value, and its subjective exchange value. Objective exchange value is referring to the actual value of the actual money.

If a dollar means an exchange of an ounce of silver, the objective value is the value of the actual metal itself-supply. The subjective value is the way demand is affected. If nobody spends more money, prices won't go up, savings will go up. On the other hand when people do spend that extra money prices will go up.

Another part of subjective value, is the marginal utility part of it. Your first ice cream for the week has more value than the 2nd ice cream. So if you get a pay rise, instead of buying ice cream, you may decide to spend it on a new computer game. The 5th hallmark is that he understands every kind of form of money. Gold is actualy money, but people used token money, to exchange for that gold. And he talks about every other form of money, like promissory notes.


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Ludwig is an expert. Having said this, Milton Friedman and William Greider are also experts. During the period of to , only rich people had money, and lent at a high rate of interest. Gold was going up in value as their was a shortage. So you had prices going up, at a high rate of interest. William Greider has pointed this out. So this means its a very good book on money, but their are others that are also very good and have a different view.

I also found that you really, really had to concentrate to read it. Which is what I found with Greider's book. I've also read some of Milton's book, also found it hard to read. So again this is for those who really want to understand money, which is why I read simpler books written by Milton. Finally to avoid any confusion Ludwig is in favour of silver as money, provided the value is set at its market value.