Economics Dictionary of ArgumentsHome
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| Currency in circulation: Currency in circulation refers to the total amount of cash (banknotes and coins) physically used for transactions within an economy. It's a key component of a country's money supply, influencing factors like inflation and economic growth. See also Inflation, Growth, Money supply._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on Currency in Circulation - Dictionary of Arguments
Rothbard III 760 Currency in Circulation/Rothbard: At any one time there is a given total stock of the money commodity. This stock will, at any time, be owned by someone. RothbardVsFisher, Irving: It is therefore dangerously misleading to adopt the custom of American economists since Irving Fisher's day of treating money as somehow "circulating," or worse still, as divided into "circulating money" and "idle money."(1)This concept conjures up the image of the former as moving somewhere at all times, while the latter sits idly in "hoards." This is a grave error. There is, actually, no such thing as "circulation," and there is no mysterious arena where money "moves." At any one time all the money is owned by someone, i.e., rests in someone's cash balance. >Cash balance/Rothbard, >Money/Rothbard, >Demand for money/Rothbard. Whatever the stock of money, therefore, people's actions must bring it into accord with the total demand for money to hold (…). For even pre-income money acquired in exchange must be held at least momentarily in one's cash balance before being transferred to someone else's balance. Total demand for money/market: All total demand is therefore to hold (…) Total stock must therefore be brought into agreement, on the market, with the total quantity of money demanded. >Purchasing power/Rothbard. 1. Cf. Irving Fisher, The Purchasing Power of Money (2nd ed.; New York: Macmillan & Co., 1913)._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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