Money circulation and debt circulation: a restatement of quantity theory of money

Article, Research English OPEN
Xing, Xiaoyun; Xiong, Wanting; Chen, Liujun; Chen, Jiawei; Wang, Yougui; Stanley, H. Eugene;
  • Publisher: Kiel Institute for the World Economy
  • Journal: Economics : the Open-Access (issn: 1864-6042)
  • Publisher copyright policies & self-archiving
  • Subject: E51 | holding time distribution | quantity theory of money | Social Sciences | G21 | HB71-74 | H | Economics as a science | money circulation | E27 | debt circulation
    • ddc: ddc:330

Both money and debt are products of credit creation of banks. Money is always circulating among traders by facilitating commodity transactions. In contrast, debt is created by borrowing and annihilated by repayment as it is matured. However, when this creation- annihila... View more
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