The need of money defines the demand for money. Credit is fashioned when there is a demand for money, as it is not enough the money to be available in a supply of money, but it should be put to good use. When productivity cannot be realised, credit is not call for and it is not available. Only if the economy is capable to expand, the companies are willing to take additional credit and create demand for money. The demand for money not simply initialises the process, as the credit is sought in the money market, but rules at the end of it again, as the requirement for more money on repayment is once more a demand for money.
Historical Backdrop
• ANNE-ROBERT-JACQUES TURGOT Reflections on the Formation and Distribution of Wealth: use of value during a determinate time.
• FRIEDRICH VON HERMANN Investigations in Political Economy: use of capital.
• MINNIE ENGLAND An Analysis of the Crisis Cycle; Promotion as the Cause of Crises: promotion activity.
• JOHN MAYNARD KEYNES The General Theory of Employment, Interest, and Money: liquidity-preference.
