Money Is Rights in Rem: A Note on the Nature of Money

I argue that the development of money and the legal concept of property have been intertwined. That is, money and property have historically tended to mirror each other’s image. This mirroring began in the late Roman Republic, where the new concept of property (dominium or rights in rem) was first settled at law and money became a predominant medium for social relations. At that time, the new concept of property (rights in rem) was created in the image of money. I argue that contemporary banking – including commercial and shadow banking – creates money by mirroring credit in the image of rights in rem.