"The Yield from Money Held" Reconsidered

Hans-Hermann Hoppe

doi:10.62374/2trwxg69

Authors

Hans-Hermann Hoppe Goethe University Frankfurt

DOI:

https://doi.org/10.62374/2trwxg69

Keywords:

crisis, quantity of money, uncertainty-protection, human welfare, purchasing power of money

Abstract

Below we publish the Franz Cuhel Memorial Lecture of 2009 by Hans-Hermann Hoppe – a critique of the notion that money held as cash balances is barren and leads to economic predicaments. He shows that while there is a wide family of proponents of such view, few economists recognize the benefits of holding money flowing from the removal of uncertainty. He demonstrates that far from being unproductive, increasing the cash balances can be viewed as an investment into greater certainty (lower uncertainty) taking place at the cost of lower consumption of goods (present and future) perceived as certain. Hans Hoppe concludes his lecture by linking this theme with the current economic crisis and attempts at alleviating its consequence.

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