Production in Hawtrey’s theory rests on trader orders and a chain of debts

Evidence

For Hawtrey, the initiative of production rested on the orders of the “dealer” or trader, i.e., the intermediary between the producer and the consumer. Th e subsequent process of production gives rise to a chain of debts: “Th e manufacturer or contractor becomes indebted day by day to his employees. Th e merchant becomes indebted to the manufacturer” (Hawtrey 1919a, 376). — Clara E. Mattei, The Capital Order, 1690

Categorization

• DEFINE: Explains the Hawtreyan credit theory of money: money is merely the medium for settling debts, and production is driven by dealer orders causing chains of debt.
• XREF: Connects to the reader’s interest in monetary theories that treat money as credit rather than store of value, contrasting Marx and Keynes. — connects to: Hawtrey’s 1913 book articulated the monetary business cycle — Clara E. Mattei, The Capital Order: How Economists…, 865