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The Capitalistic Cost-Benefit Structure of Money

An Analysis of Money’s Structural Nonneutrality and its Effects on the Economy

  • Dieter Suhr

Part of the Studies in Contemporary Economics book series (CONTEMPORARY)

Table of contents

  1. Front Matter
    Pages I-X
  2. Second-Best Capitalism

    1. Dieter Suhr
      Pages 10-17
    2. Dieter Suhr
      Pages 17-23
  3. Money’s Costs and Benefits

    1. Dieter Suhr
      Pages 24-35
    2. Dieter Suhr
      Pages 35-42
  4. The Production and Destruction of Monetary Liquidity

  5. Optimal Monetary Liquidity

    1. Dieter Suhr
      Pages 66-83
    2. Dieter Suhr
      Pages 83-101
    3. Dieter Suhr
      Pages 102-109
  6. Establishing Neutral Money

    1. Dieter Suhr
      Pages 117-122
  7. Back Matter
    Pages 123-136

About this book

Introduction

This study is concerned with the time-honored problem of the change that is induced when money enters into the economy. As far back as Aristotle (Politics, pp. 1135-1143) the still-unanswered question regarding the dichotomy of the real-exchange and the monetary economy was raised. He contrasted Oeconomic, where people strive to obtain real utilities (household management), to Chrematistic, where they use money to make more money (art of wealth-acquisition): The true wealth consists of such values in use; for the quantity of possession of this kind, capable of making life pleasant, is not unlimited. There is, however, a second mode of acquiring things, to which we may by preference and with correctness give the name of Chrematistic, and in this case there appear to be no limits to riches and pos­ sessions. Trade does not in its nature belong to Chrematistic, for here the exchange has reference only to what is necessary to themselves. ( . . . ) In the case of Chrematistic, circulation is the source of riches. And it appears to revolve about money, for money is the beginning and end of this kind of exchange. Therefore also riches, such as Chre­ matistic strives for, are unlimited. ( . . . ) Oeconomic, not Chrematistic, has a limit ( . . . ;) the object of the former is something different from money, of the latter the augmenta­ tion of money ( . . .

Keywords

Inflation Keynes unemployment welfare

Authors and affiliations

  • Dieter Suhr
    • 1
  1. 1.University of AugsburgAugsburgGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-74758-8
  • Copyright Information Springer-Verlag Berlin Heidelberg 1989
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-51138-0
  • Online ISBN 978-3-642-74758-8
  • Series Print ISSN 1431-8806
  • Buy this book on publisher's site