IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v10y2021i4p1.html

Longing for Haute Finance in the 21st Century? A Neo-Polanyian Approach to the Theory of Money in the Digital Age

Author

Listed:
  • Chikako Nakayama

Abstract

This article examines the Libra project, which was announced by Facebook in 2019 as an important turning point in the development of digital currency since Bitcoin. Libra is a kind of stablecoin, and it has been identified as a global stablecoin owing to its wide-ranging impact on the dimension of global finance. Because the Libra project aims to offer a globally accessible low-cost payment system for all users, we analyse it in the research area of global finance with a qualitative approach to the history of economic theories of money and finance. In this area, Karl Polanyi’s thoughts on money and finance and the interpretation by Saiag, which he called a neo-Polanyian approach, deserve attention. Taking this approach, we understand that unofficial functions of haute finance played a significant role in sustaining the international and interdependent financial system in the late 19th and early 20th centuries. In this context, although it also saved colonized and dependent regions from falling into financial crises, it was not socially helpful for them. If Libra wants to be the haute finance of our age in the real sense of serving to bring about financial inclusion, such a point should be considered. However, for the moment, existing international monetary institutions are only keen to take regulatory measures against the risk of dirty transactions. There is a substantial lacuna of publicness in the discussion, and this needs to be filled in in the near future.

Suggested Citation

  • Chikako Nakayama, 2021. "Longing for Haute Finance in the 21st Century? A Neo-Polanyian Approach to the Theory of Money in the Digital Age," Accounting and Finance Research, Sciedu Press, vol. 10(4), pages 1-1, November.
    • Handle: RePEc:jfr:afr111:v:10:y:2021:i:4:p:1
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/21038/12958
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/21038
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. George S. Tavlas, 2020. "On the controversy over the origins of the Chicago Plan for 100 percent reserves," Working Papers 279, Bank of Greece.
    2. Knapp, Georg Friedrich, 1924. "The State Theory of Money," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number knapp1924.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vitor Guidorzzi Girotto & Eduardo Strachman, 2026. "The contributions of Knapp and Innes to the Chartalist Theory of Money," Brazilian Journal of Political Economy, FGV EAESP, vol. 46(1), pages 94-109, February.
    2. Robert S. Kravchuk, 2020. "Post‐Keynesian Public Budgeting & Finance: Assessing Contributions From Modern Monetary Theory," Public Budgeting & Finance, Wiley Blackwell, vol. 40(3), pages 95-123, September.
    3. Martin Watts & Timothy Sharpe & James Juniper, 2014. "Reformation or exodus: Assessing the future of the Euro," The Economic and Labour Relations Review, , vol. 25(3), pages 465-483, September.
    4. L. Randall Wray, 2012. "Introduction to an Alternative History of Money," Economics Working Paper Archive wp_717, Levy Economics Institute.
    5. Mr. Michael Kumhof & Mr. Jaromir Benes, 2012. "The Chicago Plan Revisited," IMF Working Papers 2012/202, International Monetary Fund.
    6. Jörg Bibow, 2013. "Lost at Sea: The Euro Needs a Euro Treasury," IMK Studies 35-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    7. Jussi Ahokas, 2012. "Geographies of Monetary Economy and the European economic crisis," ERSA conference papers ersa12p437, European Regional Science Association.
    8. L. Randall Wray, 2012. "Keynes after 75 Years: Rethinking Money as a Public Monopoly," Chapters, in: Thomas Cate (ed.), Keynes’s General Theory, chapter 15, Edward Elgar Publishing.
    9. Adam Abdullah, 2020. "Modern Monetary Theory or Islamic Monetary Theory of Value? Evidence from Malaysia النظرية النقدية الحديثة أم نظرية النقد الإسلامي للقيمة؟ أدلة من ماليزيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 25-46, July.
    10. Pavlina R. Tcherneva, 2008. "The Return of Fiscal Policy: Can the New Developments in the New Economic Consensus Be Reconciled with the Post-Keynesian View?," Economics Working Paper Archive wp_539, Levy Economics Institute.
    11. Tommaso Brollo, 2019. "Money as a political institution in the commentaries of Albert the Great and Thomas Aquinas to Aristotle?s "Ethica Nicomachea"," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 8(2), pages 35-61.
    12. L. Randall Wray, 2020. "Sovereign Currency and Non‐Sovereign Budgets: The Modern Money Theory Approach," Public Budgeting & Finance, Wiley Blackwell, vol. 40(3), pages 26-48, September.
    13. Phil Armstrong, 2020. "Can Heterodox Economics Make a Difference?," Books, Edward Elgar Publishing, number 19964.
    14. L. Randall Wray, 2025. "The Rise of the Modern Monetary System: An Integration of the Credit and State Money Approaches," Economics Working Paper Archive wp_1076, Levy Economics Institute.
    15. L. Randall Wray, 2013. "Is there room for bulls, bears and States in the circuit?," Chapters, in: Louis-Philippe Rochon & Mario Seccareccia (ed.), Monetary Economies of Production, chapter 6, pages 54-70, Edward Elgar Publishing.
    16. Alexander W. Salter & William J. Luther, 2014. "Synthesizing State and Spontaneous Order Theories of Money," Advances in Austrian Economics, in: Entangled Political Economy, volume 18, pages 161-178, Emerald Group Publishing Limited.
    17. Éric Tymoigne, 2003. "Keynes and Commons on Money," Journal of Economic Issues, Taylor & Francis Journals, vol. 37(3), pages 527-545, September.
    18. Mario Seccareccia & Eugenia Correa, 2017. "Supra-National Money and the Euro Crisis: Lessons from Karl Polanyi," Forum for Social Economics, Taylor & Francis Journals, vol. 46(3), pages 252-274, July.
    19. L. Randall Wray, 2010. "Money," Economics Working Paper Archive wp_647, Levy Economics Institute.
    20. Alberto ZAZZARO, 2002. "How Heterodox is the Heterodoxy of the Monetary Circuit Theory? The Nature of Money and the Microeconomy of the Circuit," Working Papers 163, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:10:y:2021:i:4:p:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.