Money, given as a loan to be paid back, is credit. Money exchange is done for commodities, and then commodities can be exchanged back to money. In the credit, money is exchanged for money, which is expected to be acquired later. Credit facilitates the use of money in the economy, and the commodities are easily exchangeable, so productivity is promoted in the companies. As a result, the credit has the tendency to expand the quantity of money in the form of symbolic money; and concurrently, the credit grants a growth to the stock of goods in the market. The variation of credit is given by the variation of depository money that makes it sufficiently substantiated as commodity money. That process is realised on the money market by the supply of money and the demand for money.
Historical Backdrop
• HENRY THORNTON Inquiry into the Nature and Effects of the Paper Credit: confidence.
• IRVING FISHER The Purchasing Power of Money: deposits in accordance with money quantity.
• KNUT WICKSELL Value, Capital and Rent: credit.
• JEAN BAUDRILLARD The Consumer Society: credit as a disciplinary process of the extortion of savings and the regulation of demand.
