We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The unresolved problem of gratuitous credit in Austrian banking theory.
- Authors
Niles, Raymond
- Abstract
Ludwig von Mises called gratuitous credit, the ability banks have to create new credit, the chief problem in a theory of banking. This paper traces how Mises and succeeding generations of Austrian-school economists have grappled with this problem, but have failed to find resolution. The result is that Austrian economists disagree on a variety of issues in banking and business cycle theory, such as whether there is an endogenous business cycle under free banking, or cycles only occur under central banking. Before a resolution can be attempted, current thinking must be clarified. This paper divides Austrian economists into five schools of thought. It points to a possible resolution in the economic development writings of Joseph Schumpeter.
- Subjects
BANKING industry; ECONOMISTS; BUSINESS cycles; FREE banking; VON Mises, Ludwig, 1881-1973; SCHUMPETER, Joseph Alois, 1883-1950
- Publication
Review of Austrian Economics, 2017, Vol 30, Issue 1, p83
- ISSN
0889-3047
- Publication type
Article
- DOI
10.1007/s11138-016-0352-1