Money and Markets:Introduction
In the history of economic thought the relationship between money and market has been interpreted from two contrasting points of view. On the one hand, money is seen as an instrument created by individuals to overcome the difficulties involved in barter, its basic function being as a medium of exchange, while the other view has it that money developed before the market and that its principal function is that of a standard of value. Evidently, therefore, in the former case the unit of account function is seen to have emerged from a practice (exchange of goods and services) based on the advantages to be had for individuals seeking to maximise their utility, while in the latter case money emerges as a rule adopted by members of the community (the political authorities promoting it and ensuring it be respected) which pre-dates the market. As in the case of money, also for the market two approaches have come into confrontation in the course of the history of economic thought. With the first the market is seen as a column bearing the economies characterised by private property and freedom of enterprise. It represents the means by which members of society democratically come to decisions about the use of resources and distribution of income. In the second approach, on the other hand, the market is seen as the means by which decisions on the use of resources and distribution of income, once taken by the groups enjoying economic command, are passed on to the other members of society to be implemented. In the first case the market lies at the heart of the system and serves to prevent the enjoyment of privileges and position rents by some members of society excluding others, while in the second it merely plays a supporting role for the existing patterns of power.
|Date of creation:||2008|
|Contact details of provider:|| Postal: Cannaregio, S. Giobbe no 873 , 30121 Venezia|
Web page: http://www.unive.it/dip.economia
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2008_08. 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: (Geraldine Ludbrook)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.