L. Albert Hahn
- Published in print:
- 2015
- Published Online:
- November 2015
- ISBN:
- 9780198723073
- eISBN:
- 9780191789649
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198723073.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
This book’s theory stresses the effect of credit on capital but the literature is preoccupied by the effect of capital on credit. Two broad perspectives on the effect of capital on credit, namely the ...
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This book’s theory stresses the effect of credit on capital but the literature is preoccupied by the effect of capital on credit. Two broad perspectives on the effect of capital on credit, namely the barter and the monetary perspective, are set out. There is no money in a barter economy and so goods have to be traded against goods. Therefore capital goods can only be obtained by borrowing from another individual who saved some goods. Thus, in a barter economy savings determine the supply of capital goods. The interest rate balances the supply and demand for capital goods. Despite being logically coherent the barter view is not applicable to the modern economy. In the modern economy capital goods are not rented but usually bought on the ordinary goods market. The amount of capital goods therefore affects the goods’ price not the interest rate.Less
This book’s theory stresses the effect of credit on capital but the literature is preoccupied by the effect of capital on credit. Two broad perspectives on the effect of capital on credit, namely the barter and the monetary perspective, are set out. There is no money in a barter economy and so goods have to be traded against goods. Therefore capital goods can only be obtained by borrowing from another individual who saved some goods. Thus, in a barter economy savings determine the supply of capital goods. The interest rate balances the supply and demand for capital goods. Despite being logically coherent the barter view is not applicable to the modern economy. In the modern economy capital goods are not rented but usually bought on the ordinary goods market. The amount of capital goods therefore affects the goods’ price not the interest rate.
Andrew Demshuk
- Published in print:
- 2020
- Published Online:
- May 2021
- ISBN:
- 9781501751660
- eISBN:
- 9781501751684
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501751660.003.0002
- Subject:
- History, Russian and Former Soviet Union History
This chapter offers the grassroots departure point for local regime decisions in which frequent attempts to get help through the system seldom achieved results as some party members failed to get ...
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This chapter offers the grassroots departure point for local regime decisions in which frequent attempts to get help through the system seldom achieved results as some party members failed to get assistance when they wrote petitions. It talks about urban ingenuity that existed at the margins of legality for those who took the initiative to effect repairs by their own labor and through informal connections managed to restore a dignified existence. It also refers to officials who condoned construction that lacked central approval and used labor and materials from the barter economy. The chapter explains how a church community could restore its dilapidated building through internal donations and labor and the black market. It talks about West squatters in Leipzig who were openly breaking laws about capitalist property ownership to demand drastic social change.Less
This chapter offers the grassroots departure point for local regime decisions in which frequent attempts to get help through the system seldom achieved results as some party members failed to get assistance when they wrote petitions. It talks about urban ingenuity that existed at the margins of legality for those who took the initiative to effect repairs by their own labor and through informal connections managed to restore a dignified existence. It also refers to officials who condoned construction that lacked central approval and used labor and materials from the barter economy. The chapter explains how a church community could restore its dilapidated building through internal donations and labor and the black market. It talks about West squatters in Leipzig who were openly breaking laws about capitalist property ownership to demand drastic social change.
