The Emergence Of Money In Commodity Exchange, Or Money As Monopolist Of The Ability To Buy
Money's emergence in commodity exchange remains a unresolved issue within economic theory. Current general equilibrium models, drawing on Menger, offer an explanation that rests on the economic advantages of a universally accepted means of exchange that is established through â€˜social customâ€™. This is problematic because it does not fully explain moneyâ€™s unique ability to buy, and leaves out of account the social foundations of the customary practices required for moneyâ€™s emergence. An alternative explanation is given here, drawing on Marxâ€™s theory of value but involving a thorough reworking of it. Money is shown to be the monopolist of the ability to buy. 'Social custom' plays a vital role in its emergence, but has determinants that are consistent with the social underpinnings of markets.
|Date of creation:||Nov 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.soas.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gerald P. O'Driscoll, Jr., 1986. "Money: Menger's Evolutionary Theory," History of Political Economy, Duke University Press, vol. 18(4), pages 601-616, Winter.
- Jones, Robert A, 1976. "The Origin and Development of Media of Exchange," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 757-75, August.
- Niehans, Jurg, 1969. "Money in a Static Theory of Optimal Payment Arrangements," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(4), pages 706-26, November.
- White, Lawrence H, 1984. "Competitive Payments Systems and the Unit of Account," American Economic Review, American Economic Association, vol. 74(4), pages 699-712, September.
- Oh, Seonghwan, 1989. "A theory of a generally acceptable medium of exchange and barter," Journal of Monetary Economics, Elsevier, vol. 23(1), pages 101-119, January.
- Kiyotaki, Nobuhiro & Wright, Randall, 1989. "On Money as a Medium of Exchange," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 927-54, August.
When requesting a correction, please mention this item's handle: RePEc:soa:wpaper:126. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Duo QIN)The email address of this maintainer does not seem to be valid anymore. Please ask Duo QIN to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.