Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

698 Money, Bank Credit, and Economic Cyclesthis position when he criticizes Machlup’s view 143 that theexpansionary granting of loans creates purchasing powerwhich no one has first withdrawn from consumption (i.e.,143 Selgin’s unjustified criticism of Machlup appears in footnote 20 onp. 184 of his book, The Theory of Free Banking. Selgin would consider theentire volume of credit shown by surface “A” in our Chart VIII-2“transfer credit,” because it is “credit granted by banks in recognition ofpeople’s desire to abstain from spending by holding balances of inside