The demand that central bank money should lose value – about one thousandth every week. In this case, everyone would strive to get rid of the money quickly. – Behind this demand, which is still eagerly advocated today by representatives of the “free money doctrine,” is the idea that money is held back and thus hindered in its function as a means of intermediate exchange. – According to this doctrine, interest must not exist. It is not recognized that capital is synonymous with material means of production, whose surrender for use – be it in the form of means of labor or of money for the acquisition of such – entitles the owner to receive interest, because this is associated with an increased productivity of the labor process. – Because money is deprived of its function as a store of value under this proposal, economic agents would have to invest savings in valuables. The price of gold, in particular, would rise immeasurably. – See Women’s Money, Money Abolition, Money Functions, Money Purpose, Idle Money, Mutualism, Network Money, Paradoxomania, Regional Money, Seigniorage, Stamp Money, Infertility Theory, Interest, Interest Allocation Function, Interest Prohibition.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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