Together with Wicksell and other German speaking authors, Schumpeter re-defined the foundations of monetary theory replacing the traditional view of money as a "veil", which facilitates exchanges, with the concept of money as capital, which acts as an essential premise for the starting of new...

Schumpeter shows that bank credit acts as money-capital and, therefore, constitutes the necessary premise for the realization of the innovative processes planned by entrepreneurs. This makes it important to specify the debt contracts between each bank and entrepreneurs during the prosperity...