Skaggs, Neil T. - In: Journal of Economic Studies 26 (1999) 6, pp. 481-496
leaves open the possibility that bank credit, issued judiciously, might be used to extend the market and so increase an … economy’s growth rate. However, Smith’s theory of bank credit and note extension is quite conservative. Henry Dunning Macleod …, a century after Smith, made much of the potential of credit to extend the market. Notes Smith’s apparent inconsistency …