First published in English in 1935, this Routledge Revival is a reissue of Volume II of Knut Wicksell's Lectures on Political Economy. This volume deals with his contribution to macroeconomics, through an explication of economic theory and principle relating specifically to money, both in terms of functions and value, with a particular emphasis upon currency and credit. This volume also includes Wicksell's work on the quantity theory of money in which he first made the important distinction between the real rate of return on new capital (which he called the "natural rate of interest") and the actual market rate of interest.
Table of Contents
Part I: The Conception and Functions of Money, 1. The Economic Importance of Money, 2. Money as a Measure and Store of Value, 3. Money as a Medium of Exchange, 4. The Relation Between Money and Credit, Part II: Currency, 5. The Precious Metals as Currency, 6. Currency in Modern Times, 7. Swedish Currency History, 8. The Technique of Currency, 9. Standard Money and Token Money, 10. Money from the Legal Point of View, Part III: The Velocity and Circulation of Money. Banking and Credit, 11. On Velocity and Circulation in General, 12. Virtual Velocity of Circulation, 13. Forms of Credit, 14. Some Historical Notes on the Origin of Banking, 15. Modern Banking, 16. The "Ideal Bank" and Obstacles to its Realisation, Part IV:The Exchange Value of Money, 17. What is Understood by the Exchange Value of Money?, 18. The Average Level of Prices, 19. The Quantity Theory of the Value of Money, 20. The Cost of Production Theory, 21. Modern Theories, 22. The Defects of the Quantity Theory, 23. The Influence of Credit on Commodity Prices, 24. A Criticism of the Theories of Ricardo and Tooke, 25. The Positive Solution, 26. Conclusions: The Practical Organisation of Currency.