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The dual nature of money: why monetary systems matter for equitable bioeconomy

Author

Listed:
  • Ansel Renner

    (Universitat Autònoma de Barcelona)

  • Herman Daly

    (University of Maryland)

  • Kozo Mayumi

    (The Kyoto College of Graduate Studies for Informatics)

Abstract

Money can be understood from an individual perspective as an abstract form of wealth. From a communal perspective, however, money is better regarded as a debt, a biophysical liability, a lien on future real income of the community. Proper recognition of this dual nature raises concerns over modern, aggressive practices of money creation. It provokes a general reassessment of current institutional agreements surrounding money. In this contribution, said agreements are shown to endow money with an unnatural power to preserve its function despite structural decay. The origin of money interest derives from such institutionally given, unnatural power, where it should be noted that interest itself leads to a strong temptation among entities with money issuance rights to issue more and more. Ultimately, considered together, the dual nature of money and the biophysical origin of money interest provoke the need for a societal reappraisal of which entities should properly be given the right to create money, and which are functioning as “legal counterfeiters”. If a transition towards a more sustainable, more equitable bioeconomy is to be realized one day, discussion over who those entities are and what their rightful role is must be reopened.

Suggested Citation

  • Ansel Renner & Herman Daly & Kozo Mayumi, 2021. "The dual nature of money: why monetary systems matter for equitable bioeconomy," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 749-760, October.
  • Handle: RePEc:spr:envpol:v:23:y:2021:i:4:d:10.1007_s10018-021-00309-7
    DOI: 10.1007/s10018-021-00309-7
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    References listed on IDEAS

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    1. Daly, Herman E, 1970. "Some Observations on the Causes and Consequences of the Shortage of Change in Northeast Brazil," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 181-184, Jan.-Feb..
    2. Herman E. Daly, 1980. "The Economic Thought of Frederick Soddy," History of Political Economy, Duke University Press, vol. 12(4), pages 469-488, Winter.
    3. Kozo MAYUMI & Mario GIAMPIETRO, 2018. "Money as the Potential Cause of the Tragedy of the Commons," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 151-156, December.
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    Cited by:

    1. Filipe Moreira Alves & Rui Santos & Gil Penha-Lopes, 2022. "Revisiting the Missing Link: An Ecological Theory of Money for a Regenerative Economy," Sustainability, MDPI, vol. 14(7), pages 1-18, April.

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    More about this item

    Keywords

    Dual nature of money; Soddy; Interest; Sovereignty; Sustainability;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • G01 - Financial Economics - - General - - - Financial Crises
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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