Wednesday, September 20, 2017

Final definitions of Money and Credit


In an old PDF, Joe Salerno defines money: the final means of payment in all transactions.

At EconomicsHelp, Pettinger defines credit: any form of deferred payment.

These two definitions work. And they work together.

2 comments:

  1. NEW LINK TO THE SALERNO FILE:
    https://mises-media.s3.amazonaws.com/aen6_4_1_0.pdf?file=1&type=document

    THE ARTICLE IS
    “The ‘True’ Money Supply: A Measure of the Supply of the Medium of Exchange in the U.S. Economy.”

    FROM the Austrian Economics Newsletter (1987)

    THIS INFO IS FROM
    https://mises.org/mises-wire/how-calculate-money-supply

    ReplyDelete
  2. Here's a download page from Mises that provides access to Salerno's 1987 article on the True Money Supply:

    https://mises.org/austrian-economics-newsletter/true-money-supply-measure-supply-medium-exchange-us-economy

    The file that comes up is
    https://cdn.mises.org/aen6_4_1_0.pdf

    From footnote 9 on page 5 of 12 in that PDF:
    "As Meyer recognizes in his discussion of credit cards ... it is not enough that an item is able to serve as a means of payment in most transactions for it to be considered money; it must also serve, in his words, "to extinguish obligations between two parties," that is, serve as the final means of payment, to deserve the classification of money. See Meyer, Monetary Economics, pp. 33-34."

    ReplyDelete

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