Availability of money forms the supply of money. Abundance or scarcity of money, which is dependent on the quantity of money, determines the size of credit. The credit is given and must be reimbursed in money, so the supply of money influences the process not only at the beginning, when the credit is given, but at the end also, when the credit is paid back. Availability of money creates and repays the credit, for the supply of money determines the demand for money.
Historical Backdrop
• NASSAU SENIOR Outlines of the Science of Political economy: abstinence.
• FREDERIC BASTIAT Harmonies of Political Economy: interval between service and equivalent.
• JOHN CAIRNES Some Leading Principles of Political Economy Newly Expounded: postponement.
• CARL MENGER Principles of Economics: sacrifice.
• ALFRED MARSHALL Principles of Economics: waiting.
