CONCLUSION Ludwig von Mises made several important contributions to the theory of money: the regression theorem, which explains why money originally developed from non-monetary commodities; the refutation of any concept of neutral money that somehow does not redistribute income when the money supply changes; the idea of every existing money supply as maximizing benefits to participants in an indirect-exchange economy; changes in the money supply as conferring no identifiable increase in social value; and the monetary theory of the business cycle. In my opinion, these were peripheral to his major contribution to monetary theory. His most important and unique contribution … Continue reading Money and the State