This study highlights the profound effects that credit has always had on economic developments in capitalism. The role and significance of credit is distinctly missing in all major traditional schools of thought in economics (classical, neo-classical, Keynesian, and monetarist). The incorporation of credit into economic theory promptly reveals, argues the author, the underlying forces behind important phenomena such as inflation and recessions. This text seeks to expose the flaws of monetarist doctrines by following the evolution of economic history in parallel with the development of economic theory.
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