Hans Gestrich
Hans Gestrich | |
|---|---|
| Born | September 17, 1895 Berlin, Germany |
| Died | November 21, 1943 (aged 48) |
| Occupation | Economist |
| Known for | Modern credit theory |
Hans Gestrich (17 September 1895 – 21 November 1943) was a German ordoliberalist economist and oppositionist for Germany's deflationary policies (deflationspolitik).
Early life and career
Gestrich was born in Berlin, Germany, on 17 September 1895.
He became press officer for the Reichsbank in 1931.[1] He aligned his beliefs with Swedish economist Knut Wicksell, studying the business cycle theory and implementing it into his career. Gestrich participated in the Secret conference of the Friedrich List Society in September 1931 on the possibilities and consequences of expanding credit.[2][3]
He assumed the position of economic advisor for the Prussian State Bank and held it until his death in 1943.[1]
Works
Gestrich is credited as a researcher of the German modern credit theory. He worked alongside Wilhelm Lautenbach, Otto Pfleiderer, Leonhard Gleske, and Wolfgang Stützel.
Neue Kreditpolitik, 1936
His book Neue Kreditpolitik discusses credit mechanics and the workings of the modern banking system, specifically how it's adapted for the European continent. The book analyzes how banks create money through credit expansion and contraction. He uses balance sheet diagrams to showcase these booking processes.[4]
Kredit und Sparen, 1944
Gestrich criticises the loanable funds theory, which posits that saving is a prerequisite for credit provision. He argues that credit supply is not limited by the amount of saving, instead depending on banks' ability and willingness to provide loans and borrowers' willingness to incur debt.[5][6]
References
- 1 2 Gestrich, Hans; Eucken, Walter (1944). Kredit und Sparen [Credit and Saving] (PDF) (in German). Jena, Germany: Gustav Fischer Verlag. p. 95.
- ↑ Gestrich, Hans (1936). Neue Kreditpolitik [New credit policy] (in German). pp. 73–95.
- ↑ Decker, Frank; Goodhart, Charles A. E. (2022-03-04). "Wilhelm Lautenbach's credit mechanics – a precursor to the current money supply debate". The European Journal of the History of Economic Thought. 29 (2): 246–270. doi:10.1080/09672567.2021.1963796. ISSN 0967-2567.
- ↑ Eigner, Peter; Melichar, Peter (2008-08-01). "Das Ende der Boden-Credit-Anstalt 1929 und die Rolle Rudolf Siegharts". Österreichische Zeitschrift für Geschichtswissenschaften (in German). 19 (3): 56–114. doi:10.25365/oezg-2008-19-3-4. ISSN 2707-966X.
- ↑ Lindner, Fabian. Does Saving Increase the Supply of Credit? A Critique of Loanable Funds Theory (PDF). Dusseldorf, Germany: World Economic Review.
- ↑ Bernholz, Peter (1989). "Geldwertstabilität und Währungsordnung" [Monetary stability and monetary system]. Beiträge zur Ordnungstheorie und Ordnungspolitik (in German). Mohr Siebeck: 14. doi:10.1628/978-3-16-165996-6. ISBN 978-3-16-165996-6.
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