AbstractInternational Journal of Community Currency Research
This paper explores the fundamental importance of sociality to monetary sovereignty, investigating the apparent contrast between the state and the market in theories of money. Sociality deserves attention given the recent increase since the 1990s of denationalised, regional and, more recently, crypto currencies, which are different from legal tender. First, we examine the classification of metalism and chartalism, that is, the commodity theory of money on one hand and the chartal theory of money on the other (Section 2). The former has been dominant in the history of economic thought, focussing on catallactics, or the function of money as a medium of exchange, while the latter lays more importance on the function of money as a means of payment and relies on literature in history and anthropology. We then concentrate on the meaning of the institution of payment and debt, with which a person can participate in the society to which he/she belongs (Section 3). People’s belief in the perpetual validity of this institution is indispensable for monetary sovereignty. Further, we investigate the idea of the social credit given a hundred years ago, when the trust in this institution and the state itself was severely lacking, as an important application of the sociality of money. In conclusion, we show that sociality among people, embodied in the existence of monies and currencies, cannot be reduced to the market nor to the state.
An Investigation Of The Social And Credit Theory Of Money, Focussing On The Contemporary Situation Of Monetary Sovereignty
Chikako Nakayama,, Manabu Kuwata and Minato Machi
International Journal of Community Currency Research VOLUME 24 (SUMMER 2020) 89-100
I only skimmed thru that, but as a supporter of full reserve banking (which I think Andrew Anderson also supports) I didn't find much to disagree with in that paper.
ReplyDeleteI support full reserve in the sense that I think all taxpayer funded support for private banks should be withdraw, permanently, for ever and ever. In that scenario, the only really safe form of money would normally be central bank issued dollars, so that’s what most people would use most of the time.
But as the article says, it’s always possible we get burdened with a chaotic Mugabe type government. In that case, people will seek out an alternative currency, which is what people did in Zimbabwe. And private banks should be free to issue dollars or whatever they want to call their currency. But to repeat, that should never have state support.
Well private banks issued a form of fraudulent liquidity/currency paper in the shape of mortgage bonds causing the GFC. This raises the question how much "freedom" to allow the private sector to do its thing!
ReplyDeleteHow does issuing bonds make the price of the bonds go down?
ReplyDeleteHow about maybe take a course in Finance and Accounting...
The collateral was fake! Wake up Franko!
ReplyDeleteNo it wasn’t ... the cost psf for building materials collapsed once Iraq reconstruction purchases ended... so housing price ofc came down...
ReplyDeleteEven then there were no problems until Fed added $100Bs of Reserve Assets in September and caused a collapse in SLR and shut down the credit system...
Get some training ... you’re unqualified you shouldn’t even be allowed to comment..,