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The Monetary Theory of Private Property

In: Privatization and its Limits in Central and Eastern Europe

Author

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  • Hella Engerer

    (German Institute for Economic Research)

Abstract

Whereas the contractarian model illuminated particularly the correlation between the emergence of ownership and the new definition of the state’s role, the point of view described herein as “monetary” establishes a connection between ownership and money. Unlike neoclassical theory, which assumes the neutrality of money, monetary analysis attributes money a fundamental function. From the monetary viewpoint, the specific ways of functioning and the initial problems of transformation economics require a particular development strategy. In contrast to neoclassical analysis, private property, but not necessarily privatization, is accorded central importance.

Suggested Citation

  • Hella Engerer, 2001. "The Monetary Theory of Private Property," Studies in Economic Transition, in: Privatization and its Limits in Central and Eastern Europe, chapter 3, pages 74-82, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-52300-5_4
    DOI: 10.1057/9780230523005_4
    as

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