Business Law Usury

1343 Words6 Pages
By investigating the problem of usury debt in today's economy the researcher is faced with the need to clearly define the scope of credit or loan itself. On the one hand, the debt as an economic category is a rather narrow and specific object: it encompasses the totality of relations about borrowing money, material assets and their return. On the other hand, these relations are inconceivable outside of social reproduction in its capitalist form. According to the point of view of classical political economy reproduction is constant renewal, continuous repetition of the production process. Addressing issues of social reproduction as a basic economic problem - reproduction in the broadest sense is a process that involves the entire chain production - distribution - exchange - consumption. Debt load formation during the reproduction process (in particular, in its expanded form) originally inherent in the western mode of management. This fact is due to the existence of the credit relationship, which, in turn, is directly determined by the presence of industrial relations in society. Thus, connection of social reproduction and the debt problem is provided through a loan. Credit inevitably generates tangible or financial obligations of the borrower before the lender moving the cost of some participants of industrial relations to other on conditions of percentage base pay out. Modern science knows many approaches to the definition of credit. This category can be treated in a legal sense (as a loan deal), in political economy, using the micro- or macroeconomic approach, etc. Economic theory and practice identifies two main types of credit - commercial and bank’s credit (Anderson & Liu, 2013). The first is a credit assisted to each other in... ... middle of paper ... ...ewofLiterature.pdf. Anderson, R. G. & Liu, Y. (2013). Banks and credit unions: Competition not going away. The Regional Economist. Retrieved from https://www.stlouisfed.org/publications/re/articles/?id=2357. Cecchetti, S. G., Mohanty, M. & Zampolli, F. (2011). The real effects of debt. BIS. Retrieved from http://www.bis.org/publ/work352.htm. De Soto, J. H. (2009). Money, bank credit, and economic cycles. Auburn, Alabama: Ludwig von Mises Institute. Insley, J. (2011). Credit card interest rates hit 13-year high, analysis shows. The Guardian. Retrieved from http://www.theguardian.com/money/2011/may/05/credit-card-interest-rates-13-year-high. Liikanen, E. (2013). The economic crisis and the evolving role of central banks. BIS. Retrieved from http://www.bis.org/review/r131128c.htm. Rowlinson, M. (2010). Real money and romanticism. New York: Cambridge University Press.
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