Lack of money

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Lack of money is the experienced lack of money .

General

A trade encyclopedia from 1823 defined the lack of money as the "outflow, the non-existence of money, when ... the circulating money is not sufficient for some reason". An economic definition by Oskar Ludwig Bernhard Wolff saw the lack of money as “an obstructed circulation of money due to some cause, e. B. war , government bonds , cash shipments abroad. ”Both cases indicate that a lack of money from an economic point of view could represent a problem with the supply of money, which consists of insufficient money in circulation. Until the middle of the 20th century, central banks were not in a position to control the money supply in such a way that an adequate supply of money in the economy was guaranteed at all times. From a business perspective, lack of money is the relative scarcity of money that can hinder consumption , investment or debt servicing.

Heinrich Heine suffered from a lack of money all his life, so that his rich uncle Salomon Heine had to support him financially. So he confessed on September 30th, 1823: "Lack of money or abundance has not the slightest influence on my principles, but all the more on my actions".

economic aspects

Lack of money in economics is a money gap that occurs when there is a deficit between the current money supply and the equilibrium money supply, or the money supply and demand . In modern economies, a lack of money of this kind is practically impossible because the monetary policy of the central banks is aimed at ensuring the supply of money to the economy by appropriately controlling the money supply to the necessary equilibrium money supply .

Lack of money means the relative scarcity of money and affects the stock of means of payment ( cash , book money , money substitutes ). It can affect all economic subjects ( private households , companies or the public sector ). It arises when there is a specific need for financing for consumption or investments, but a financing risk stands in the way of full financing . A lack of money means that economic agents can not convert their needs into purchasing power and are therefore unable to buy . They are therefore dependent on bartering or have to refrain from consuming.

Not only a temporary lack of money is an indicator or the perceptible form of illiquidity , which can lead to insolvency and thus to bankruptcy . Detailed financial planning (companies, the state and its public administration or state-owned companies ) or private financial planning (private households) can prevent future lack of money. The causes of the lack of money can possibly be eliminated through liquidity planning or a private liquidity calculation.

literature

Web links

Wiktionary: Lack of money  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ↑ Josef Alois Ditscheiner, Complete Terminology of Commerce , 1823, p. 178
  2. ↑ Oskar Ludwig Bernhard Wolff, New Most Elegant Conversations Lexicon for Educated People from All Classes , Volume 2, 1835, p. 173
  3. ↑ Josef Rattner / Gerhard Danzer, Master of the Great Humor , 2008, p. 161
  4. ^ Max Nietzki, Heinrich Heine als Dichter und Mensch , Volume 1, 1895, p. 71