A stagflation-proof bill of exchange circulation model – Presentation and evaluation

As a continuation of a preceding article discussing liquidity creation based on promissory notes and bills of exchange, the present study introduces how the use of notes and bills can foster the particular economic sectors and public debt management at a time. A financial policy package of measures first suggested by Lautenbach then introduced by Schacht fought off recession and inflation within half a decade in the German economy. We make up for a professional hiatus in the Hungarian economic literature, in that we provide a detailed evaluation of the financial solution of Schacht which has appeared in many forms in the international literature..