ABSTRACT
This chapter considers Schumpeter, Mises, and Wicksell's thought on the value of money, before it turns to the implications of the Wicksell-Mises-Schumpeter conjecture for the medium of account within a new monetary economics framework, eventually leading to some conclusions. It explores the Wicksell-Mises-Schumpeter conjecture in order to develop new monetary economics, concerning the determination of the unit and medium of account. Schumpeter develops his monetary thought in "Das Sozialprodukt und die Rechenpfennige" and his posthumous Das Wesen des Geldes. 'New monetary economics,' involves a functional separation of monetary functions making units of account distinct from media of exchange. Turning to new monetary economics, the chapter focuses on the value of the unit and medium of account rather than the value of money. The Wicksell-Mises-Schumpeter conjecture means that the value of money is given by its purchasing power and is derived from thevalue of the commodities it can buy, not from any intrinsic value of money material.
