Henry Dunning Macleod (1821–1902): Money as the Highest Form of Credit

Jan Greitens ()
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Jan Greitens: Johann Wolfgang Goethe-Universität

Chapter Chapter 18 in Currency and Credit Money, 2026, pp 183-189 from Springer

Abstract: Abstract This chapter presents Macleod’s credit theory, defining money as the highest form of credit. He argues that banks actively create money through lending, rejecting the view that they are mere intermediaries. Macleod conceptualizes banks as “manufactories of credit” and emphasizes the central role of debt in monetary systems. His theory highlights the endogenous creation of money and the active of banking for economic development. This chapter positions Macleod as a precursor to modern credit creation theory, challenging both metallist and classical views of money.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spshcp:978-3-032-24113-9_18

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DOI: 10.1007/978-3-032-24113-9_18

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