Many things have passed as money: salt in Abyssinia, tea-bricks in Asia, sugar in the West Indies, barrels of oil in Texas … and metals everywhere. The list seems endless. However, as transactions increased, wealth accumulated, and states levied taxes, such proto-moneys moved from the simple “double coincidence of wants” into more rational and complex forms. They catered for a market or hierarchy of markets. “Money,” said Carl Menger, “is not a political invention.”.

This book examines the characteristics of monetary institutions and the ways in which a clear understanding of money, and a sense of what we can know about money, can improve our comprehension on monetary policy. It establishes a link between abstract and theoretical aspects of monetary theory and the problems with money and banks we face today.

Magic and religion are at the origin of the concept of money as a unit for measuring value. Actually, they determined the first forms money took: precious objects, engraved stones, amulets and talismans which conferred a special power, within a social group, on the one who possessed them. In time, this power came to include the power of acquisition in commercial terms, but its original ties with magic were never lost. Aristotle clearly saw the relationship between a certain (...) concept of money (in Politica) and a new ethical concept as a corrective for the imbalances within a social community (in Ethica Nicomachea). If we look closely, we see that this ethical concept is not in opposition to the former but emphasizes the double aspect of the idea of money in antiquity, an idea which has survived, with some modifications, in Christianity and the modern era. (shrink)

Contrary to the rarity of totipotent cells in animals, almost every cell formed by a fungus can function as a “stem cell”. The multicellular fruiting bodies of basidiomycete fungi consist of the same kind of filamentous hyphae that form the feeding phase, or mycelium, of the organism, and visible cellular differentiation is almost nonexistent. Mushroom primordia develop from masses of converging hyphae, and the stipe (or stem), cap, and gills are clearly demarcated within the embryonic fruiting body long before the (...) organ expands and unfolds through water uptake and cell wall loosening.aThough frequent references are made to gilled mushrooms in this article, the totipotent nature of fruiting body cells and lack of meristems is also applicable to basidiomycetes that spread their spore‐producing tissues inside tubes (e.g., boletes), over spines and rippled surfaces, or form spores in cavities within the fruiting body. Even in the mature mushroom, every hypha retains its totipotency. Among animals, only sponges exhibit a similar degree of developmental flexibility, which is interesting, because these simple metazoans may be relatively close relatives of fungi. BioEssays 24:949–952, 2002. © 2002 Wiley Periodicals, Inc. (shrink)

Institutions generate cooperative benefits that explain why they exist and persist. Therefore, their etiological function is to promote cooperation. The function of a particular institution, such as money or traffic regulations, is to solve one or more cooperation problems. We go on to argue that the teleological function of institutions is to secure values by means of norms. Values can also be used to redesign an institution and to promote social change. We argue, however, that an adequate theory of (...) institutions should not be ‘moralized’ in that they should not be defined in terms of the values they are supposed to promote. (shrink)

If money is used in a market setting, and if it fulfils its three traditional functions well, this creates normative problems. Arguably, the two most pressing problems linked to markets – inequality and corruption – are partly caused by the prevailing monetary design. Given the history of suggested monetary reforms, one might reasonably hope that, by consciously re-designing the functions of a currency, one might overcome these issues. This essay argues that there are clear moral limits to (...) this. Because of the way inequality and corruption are intertwined via money’s functions, we cannot simultaneously overcome both problems. This also means that even though these problems have monetary causes, they do not have purely monetary solutions, but need to be addressed relying on fiscal or market reform as well. (shrink)

In the present research, we validated a new scale developed from self-determination theory (SDT) to assess the functional meaning of cash rewards offered in the workplace. According to SDT, rewards can take on different meanings based on the way they are perceived by individuals. In a series of three studies in different socioeconomic contexts, we replicated the two-factorial structure of the scale measuring respectively workplace cash rewards’ informative and controlling meanings. In Study 1, we validated the English version of the (...) scale by exploring and then confirming its two-factor structure with two English-speaking employee samples. We further replicated its two-factor structure in a French-speaking employee sample of employees in Study 2 and in a Greek-speaking employee sample in Study 3, allowing us to validate its French and Greek version. Results from our three studies show how distinct meanings attributed to cash rewards, i.e., informative or controlling, relate differently to autonomous and controlled forms of motivation based on SDT. These findings suggest that workplace cash rewards differently influence employees’ motivation depending on whether they are perceived as informative or controlling, thus providing empirical evidence for the theoretical and practical implications of SDT’s concept of functional meaning of cash rewards. Our research contributes to the assessment and understanding of employees’ experience of workplace cash rewards and provides empirical evidence that the concept of the functional meaning of cash rewards is a distinct concept from other money-related concepts such as subjective pay satisfaction, performance-contingent rewards, and financially contingent self-worth. (shrink)

For Keynes, the history of money begins when the function of measure of value arises for the first time. By contrast, Menger believes that the origin of money is determined by the appearance of the function of medium of exchange. Despite this substantial difference in interpretation, Menger and Keynes agree in terms of criticizing the function of store of value, even though this third function is useful under certain conditions. This paper argues that this agreement, at the level (...) of monetary theory, is linked to a common ethical evaluation: Both stigmatise the love of money exactly because this desire involves a false absolutisation of money as a store of wealth. The paper will be structured in two main parts: I. Monetary Theory. The first part briefly sketches the two competing models of the explanation of the origin of money and its value. II. Ethics. In the second part, the focus will be the common rejection of the love of money. (shrink)

In the view of the Franco-Jewish philosopher Emmanuel Levinas money has a multitude of anthropological and ethical meanings, not excluding contradictions. For money functions on different levels, namely on that of the I and the effort of its being, that of the relation with the other and that of the ‘third’, that is to say on the socio-economical and judicial level.It will have become clear that Levinas’ philosophical approach to money not only offers a phenomenological description, (...) but also expressly formulates an ethical and thus normative dimension. It not only tries to understand what ‘is’ , but also opens up perspectives on what ‘should be’ . It is thus not a neutral, disengaged analysis, but literally a ‘pro vocative’ or ‘calling-forth’ approach that thereby calls the factual praxis of money critically into question regarding its ethical quality, or its humanity.This ethical approach lays bare not only the different sense but also the ambivalences and contradictions of money. In this respect, money is never a self-evident ‘good’ about which a naive sort of metaphysics or entrenched ‘doctrine of being’ could be developed, but a literally ‘ambivalent’ middle term that not only can enter the service of evil but, precisely through its so-called neutral objectivity, can bring to this same evil the seductive and misleading charm of the good. (shrink)

Background A biobank is a structure which collects and manages biological samples and their associated data. The collected samples will then be made available for various uses. The sharing of those samples raised ethical questions which have been answered through specific rules. Thus, a Biobank functioning under tight ethical rules would be immensely valuable from a scientific and an economic view point. In 2009, Côte d’Ivoire established a biobank, which has been chosen to house the regional biobank of Economic Community (...) of West African States countries in 2018. To ensure optimal and efficient use of this biobank, the scientific community must be aware of its existence and its role. It was therefore necessary to evaluate the knowledge of laboratories staff on the role and activities of a biobank. Methods This descriptive study was done by questioning staff from laboratories working on human’s health, animals or plants. The laboratories were located in southern Côte d’Ivoire. Results A total of 205 people completed the questionnaire. Of these 205 people, 34.63% were biologists, 7.32% engineers, 48.78% technicians and 9.27% PhD students. The average length of work experience was 10.11 ± 7.83 years. In this study, 43.41% of the participants had never heard of biobanking. Only 48.78% of participants had a good understanding of the role of a biobank. Technicians and PhD students were less educated on the notion of biobank. Conclusion The level of knowledge of laboratory staff about biobanking needs to be improved. Training on the role, activities and interests of the biobank is important. (shrink)

The answer to the question 'what is money?' has changed throughout history. During the Gold Standard era, money was seen as gold or silver (the theory known as bullionism). In the early 20th century, the alternative theory known as chartalism proposed that money was a token chosen by the state for payment of taxes. Today, many economists take an agnostic line, and argue that money is best defined in terms of its function, e.g. as a neutral (...) medium of exchange. This paper argues that none of these approaches adequately describes the nature of money, and proposes a new theory, inspired by non-Newtonian physics, which takes into account the dualistic real/virtual properties and complex nature of money. The theory is applied to the example of the emergence of cybercurrencies. (shrink)

“Functional finance” is an economic theory within the Post Keynesian school of thought. Especially in the form of Modern Monetary Theory (MMT), it has begun to have two big but opposite effects on the debate over Universal Basic Income (UBI). Some people state MMT in an exaggerated way that implies the government can spend all it wants on UBI or anything else without ever raising taxes or borrowing money as if government spending had no limits of any kind. Other (...) people refer to MMT while arguing that any effort to maintain a livable level of UBI is unsustainable. This article discusses the functional finance implications for the cost and sustainability of UBI, arguing that neither of those exaggerated implications are correct. MMT doesn’t free us for the concern for how to support UBI with taxes, but neither does it give reason to believe UBI is any less sustainable. (shrink)

Macroeconomic traditions disagree on the policies needed for the economy to properly function and how to assess them. In this paper, we contend that these disagreements originate from the social ontological commitments of a theory. The ontology of money underlines these disagreements between Modern Monetary Theory (MMT) and mainstream economics. First, we assess MMT’s ontology of money. Next, we identify MMT’s normative commitments and classify MMT’s ontology as a taxonomic definition with thick concepts. Finally, we offer reasons why (...) MMT's ontology of money leads to rivalries with other economic traditions. We argue disagreements on policy are expected, given the ontological differences elaborated. (shrink)

John Searle has proposed one of the most influential contemporary accounts of social ontology. According to Searle, institutional facts are created by the collective assignment of a specific kind of function —status-function— to pre-existing objects. Thus, a piece of paper counts as money in a certain context because people collectively recognize it as money, and impose a status upon it, which in turn enables that piece of paper to deliver certain functions (means of payment, etc.). The first (...) part of this essay presents Searle’s theory of social ontology and summarizes his views on money. The second part centers on criticisms of his views and compares his theory with its main competitors, including the theories of Tuomela, Guala and Hindriks, and Smit, Buekens and Duplessis. The conclusion attempts to see what may remain of Searle’s theory after careful examination. (shrink)

It can be hard to see where money fits in the world. Money seems both real and imaginary, since it has obvious causal powers, but is also, just as obviously, something humans have just made up. Recent philosophical accounts of money have declared it to be real, but for very different reasons. John Searle and Francesco Guala disagree over whether money is just whatever acts like money, or just whatever people believe to be money. (...) In developing their accounts of institutions as a part of social reality, each uses money as a paradigm institution, but they disagree on how institutions exist. Searle argues that the institution of money belongs to an ontological level separate from the physical world, held up by the collective intentions of a group, while Guala claims that money is a part of the ordinary physical world and is just whatever performs a “money-like function” in a group, regardless of what that group believes about it. Here, we argue that any purely functional account like Guala’s will be unable to capture the distinctive phenomenon of money, since monetary transactions are defined by the attitudes transactors hold toward them. Money will be obscured or misidentified if defined functionally. As we go on to show by examining recent work by Smit et al., belief in money does not require taking on all of Searle’s ontological commitments, but money and mental contents will stand or fall together. (shrink)

Money is a symbol. Beginning with this simple notion, we have completed a qualitative study of how money exists in people’s everyday lives and how it is used symbolically. A review of the financial, economic, psychological, and semiotic literature shows that even though money is written and talked about exhaustively, little symbol theory appears in economic writing, and we rarely found money mentioned in semiotic texts. We used a qualitative, phenomenological approach to identify critical thematic elements (...) and underlying structures of participants’ experience. We also incorporated an accepted symbol-structure template in our analysis of the functions, emotions, actions, and reactions in the transactions our participants described. Participants refer to money both as wealth in the abstract and as concrete amounts about to be used. Our analysis of money in the abstract describes a structure of experience involving belonging, privacy and secrecy, unequal distribution, quantitative uncertainty, reflections of life history, and values. Our analysis of money in the concrete reveals a symbolic intention and a variety of “Others” engaged in the symbolic action. (shrink)

Money performs its economic functions best when its value remains stable over time. This Article explores how that desideratum was achieved, or not achieved, under five identifiable monetary regimes in economic history. Transitions from one regime to another resulted from the demands of economic growth, which some regimes met better than others. The modern fiat money regime is optimal in most economic respects. Whatever amount of money needed to accommodate growth can be supplied at minimal costs. (...) But political control over money creation can be used to increase the short-term control over economic resources of those in power and their constituents. When such debasements of money have occurred, the political economy of every regime interfered with achieving optimal long-term economic outcomes by unleashing inflation. How might the modern fiat money regime avoid that result? (shrink)

Taking the Scottish Enlightenment philosopher David Hume as its subject, this book breaks new ground in focusing its lens on a little-studied aspect of Hume's thinking: his understanding of money. George Caffentzis makes both an intervention in the field of monetary philosophy and into Marxian conceptions of the relation between philosophy and capitalist development. He vividly charts the ways in which Hume's philosophy directly informed the project of 'civilizing' the people of the Scottish Highlands and pacifying the English proletariat (...) in response to the revolts of both groups at the heart of the empire. Built on careful historical and philosophical detective work, Civilizing Money offers a stimulating and radical political reading of the ways in which Hume's fundamental philosophical claims performed concrete political functions. (shrink)

This essay responds to “Money as Art: The Form, the Material, and Capital” by the Marxist economist Costas Lapavitsas with refer-ence to the triple manifestation of crisis in the United States dur-ing the spring months of 2020. By triangulating the role of money in the COVID-19 pandemic, the ensuing mass unemployment, and the historical nationwide revolt in response to the police mur-der of George Floyd predicated on a counterfeit twenty-dollar bill, Nicholas Huber makes a three-part claim. First, that (...) acceptance of the Marxist theory of fetishism forecloses the possibility of conceiv-ing of capitalist money as art in the sense developed by Lapavitsas, insofar as the latter tends toward transhistorical concepts of both art and money. Following from this, any aesthetic function of mon-ey in the capitalist mode of production is inseparable from its total social function; that is, capitalist money is at once an economic, political, cultural, and aesthetic mediation unlike any other. Finally, Huber draws on Louis Marin’s typology of the frame in correspond-ence with Erik Olin Wright’s integrated class analytic framework to argue that the question of whether money is art or not leads us to a dead end. Huber suggests that a crisis such as the one unfolding in 2020 raises instead the more challenging question of what social system must come into being, such that a theory of capitalist money as art becomes intelligible. (shrink)

The place of money capital in the theory of the firm has remained a relatively neglected question in traditions of economic analysis. In this highly integrative work, issues in production, pricing, capital investment and financial theory are brought to new levels of interdependence. Developing a three-part argument, Money Capital in the Theory of the Firm deals successively with the theoretical issues and analytic motivation, the neoclassical tradition and postclassical perspectives. In doing so, it presents a self-contained foundation in (...) the basic structures of microeconomic analysis relating to optimize decision making in the firm and in the accounting concepts and statistical apparatus of probability theory relevant to the neoclassical aspects of the argument. Additionally, the book provides the essential mathematical development of such advanced topics as utility functions defined over stochastic arguments, the equilibrium theory of financial asset prices and yields, the cost of money capital, and investment decision criteria. This book makes an important contribution to the formation of new and analytically richer perspectives in the important area of economics it addresses. It will be of particular interest to those working in economic theory and microeconomics, and their advanced students. (shrink)

Does the very existence of money depend in any sense on our “recognition” of it? According to certain functionalist views, no such attitudes are necessary. This paper argues to the contrary for recognition dependence, of a minimal sort. What’s needed in a population is (1) the functional know-how of money use, (2) an ideational structure founded upon people’s thinking about what others are thinking, and (3) wide enough acceptance of a payment or settlement obligation (as expressed, e.g., when (...) someone asks a vendor “So what do I owe ya?”). (shrink)

Money is a specifically human incentive. However, functional imaging techniques bring striking evidence that neural circuits pertaining to more “natural” addictive and rewarding processes are involved in response to monetary reward. Main results are evoked here, with specific brain responses demonstrated along the different stages of the process. (Published Online April 5 2006).

continent. 1.1 (2011): 22-25. The Author gratefully acknowledges the financial support of CAPES (Coordenação de Aperfeiçoamento do Ensino Superior), Brazil. From the multifarious subdivisions of semiotics, be they naturalistic or culturalistic, the realm of semiotics of value is a ?eld that is getting more and more attention these days. Our entire political and economic systems are based upon structures of symbolic representation that many times seem not only to embody monetary value but also to determine it. The connection between monetary (...) and linguistic exchanges is self-evident: the former requires the latter and develops in direct relation to it. Creative experimentation and design of digital systems of value exchange are blossoming on the web. Dr. Gilson Schwartz, an economist turned media theorist and professor at the University of São Paulo, adopted the concept of Iconomics, originally created by Michael Kaplan, an author concerned with the linguistics of economic value. Empowering local communities and unlocking new levels of value creation and representation via digital technologies are the main goals of Dr. Schwartz’s projects, aiming at the re-designing of our relationship to the economic value of imagination and the social control of property. Schwartz is Assistant Professor at the School of Communication and Arts of the University of São Paulo, a former Chief Economist at BankBoston, Brazil and Advisor to the President of the National Social and Economic Development Bank (BNDES). FURTHER READING: Kaplan, Michael. “Iconomics: The Rhetoric of Speculation.” Public Culture . 15.3 (2003): 477-493. Renata Lemos-Morais: You have recently produced and directed a short documentary about Creative Currencies in Latin America. Could you tell us a bit about its process and its findings? Gilson Schwartz: The “Creative Currencies” project is a work-in-progress platform which unfolds as an action research agenda connected both to the production of audiovisual content and the development of social currency software. The initiative dates back to 2003 when I led an experimental project supported by the Presidency of Brazil. At that time, we issued paper currency in a small, touristic village in the Northeast Region which stimulated local cultural projects. But it was only in 2009 that the Central Bank of Brazil acknowledged “social currencies” as a legitimate economic agenda, calling for more debate at the I Financial Inclusion Forum. This year, the monetary authorities organized a second forum that also opened the room to discussions on mobile payment systems and new perspectives on poverty alleviation via State subsidies. The Ministry of Culture funded the “Creative Currencies” project in 2009-2010 and our next stage in this discovery process is to be supported by the National Social and Economic Development Bank (BNDES). In short, there is genuine interest among public officials in different areas and public funding for social currencies is on the rise in Brazil. However, after all these years we are still at a very early stage of research and practice. Some of the most successful initiatives (such as Banco Palmas) actually evolved out of local monetary creation to become correspondent banking operations for commercial banks and other financial groups. After eight years of price stability and social inclusion, Brazil stands out as a major opportunity for social experimentation, even the Grameen Bank is now entering the Brazilian market and many NGOs are geared towards different forms of entrepreneurialism in the base of the pyramid, riding solidarity economic models, microfinance and microcredit for local development. It is yet to be seen, however, whether these developments are just one more stage of “bankarization”, that is to say, an extension of regular banking services or actually a new form of social and symbolic self-determination at the local level. So far, the Central Bank of Brazil is open to new forms of credit and local finance as long as they are strictly territorial and very close to barter among the poor. In other words, whether the process of monetary creation could be made to fit an open source paradigm is yet to be seen. Community banking and social currencies might as well end up as just another channel for access to and use of banking services. The “Creative Currencies” project aims at promoting the discussion of more fundamental issues, such as the limits of central banking, the prospects for local financial development and the possibility of creating and managing financial icons as cultural assets. The purpose of this project is to produce short documentaries that will bear testimony to this evolving regulatory framework while inducing more discussion about the fundamental iconomic issues concealed in the process of money and wealth creation. RLM: What new potential is there in applying digital technologies to currency creation? GS: Globalization is a result of the virtualization of money, that is, the overcoming of illusions such as the “gold standard”. Money is an icon created by institutions, not on supposedly natural or material foundations but out of political and financial interests. The “dollar standard” is an outstanding evidence of this phenomenon and Kaplan´s paper, the first to use the expression “iconomics”, insists on the rhetoric and semiotic effects associated to a supposedly scientific model of money creation and management. This is a fundamental change that was perceived and discussed much before the digitalization of the world by unorthodox economists such as John Maynard Keynes since the early 20th century. The digitalization of global financial flows accelerated this immateriality and the creation of the Euro was yet another evidence of the political foundations of currencies. The banking establishment, however, is keen on the idea that scientific formulae hold the key to sound money creation. Keynesianism has been repeatedly associated to “inflationism” while the supposedly sound monetary policies of the Orthodoxy serve well the political and financial interests of a technocratic elite. Corporate media also serve this fictitious depiction of the monetary process despite the cyclical bust of monetary rules and financial regulations. The internet, however, has created numerous opportunities for the disintermediation in industries such as film, music and commodities. There is no reason to doubt that the financial industry can also be transformed by Peer-to-Peer (P2P) infrastructures. Money is media as well. Credit is but confidence. Once people realize that the distributed computing power of networks can also be the platform to weave new monetary and credit operations, there is room for grassroots emancipation out of the established owners of monetary institutions. So far, however, there has been a privatization of monetary management and there is not a clear path or model for the emergent (P2P) property democratization that is inherent to the internet. Digital assets, however, clearly have an inherent potential to escape central control and proprietary regulatory frameworks. RLM: How are social networks transforming the ways in which we exchange value? Do you believe that online influence and reputation might be translated into a new kind of currency? GS: The foundation for social currencies as envisaged by solidarity economics is the territory. Authorities are willing to concede local monetary creation as long as it is restricted to poor neighborhoods, as a proxy to barter. In this relevant but limited context, reputation, personal knowledge and informal ties form the matrix of local or “proximity” finance which are expected to keep credit and leverage to a sustainable level. Anything beyond that should and would lead to an integration of local finance into the established banking system. However, inasmuch as the internet promotes virtual territories and reputation is now subject to all sorts of digital manipulation and stardom becomes an everyday cultural process among teenagers and elders alike, the territorial “foundation” is substituted for more complex patterns of solidarity, cooperation and exchange that reach beyond the physical territory and even the “human.” Digital assets embody knowledge, technology, cultural and educational values that are exchanged at a global scale beyond the control of democratic States (Chinese-like intervention is the exception, not the rule). Hacktivism is unstoppable and so is monetary hacktivism. Especially in the Third World, mobile communications fast became conveyors of money transfers and other appropriation strategies. Banking and telecom sectors already battle for the control of these emerging markets and, as a matter of fact, have so far contributed to the containment of these processes. Governments serve these moguls and have usually adopted a wait-and-see attitude. If open source hardware and grassroots social movements combine to challenge these proprietary battles, then social networks may evolve into new forms of social capital and thus form the ground on which to design and implement social currencies. The global financial crisis, as well as the dollar demise, are an event of such a proportion that social networks may open the path for emancipator subjects to seize the opportunity. RLM: What are some of the social experiments that you think are revolutionizing the way in which value is exchanged? GS: There is a broad evolution of economic systems towards the valuation of intangible assets such as knowledge, reputation and sustainability. There are many examples of local as well as global events that call the traditional systems of exchange into question, from carbon credits to educational bonuses, digital barter frameworks and locally based solidarity and fair trade networks. These emerging examples, no matter how different in nature or scale, represent a challenge to the traditional value creation schemes and theories which are based on use and exchange value, supply and demand. This is not to say that utility and labour or scarcity are to be totally dismissed, but there is now an emerging perception that value is also a function of behavioral codes, symbolic patterns and the energy of institutional frameworks. The plasticity of digital platforms is relevant insofar as intellectual property becomes the central source of value creation. But when you discuss the property rights of public goods such as the environment or basic social rights (of minorities or localities), then a new paradigm seems to emerge. RLM: Are gaming and online storytelling digital practices that might have an impact on the way new currencies are created and developed? GS: “Play money” has been one of the early and most intriguing phenomena associated to the diffusion of virtual worlds. These virtual currencies have also been prone to “boom and bust” dynamics, speculation and pure theft (Second Life scams were common and led to “intervention” by the owners of the game). Storytelling is a major source of value, that is, the value of attention and the markets for audience. There are plenty of private monies created and managed by corporate entertainment groups, telecom operators (via mobile virtual network operators) and marketing frameworks. The casino economy, as already depicted by Keynes and other unorthodox economists, is always storytelling about future states of the world, confidence building and leverage of animal spirits. The novelty of current events is not the fictitious nature of any form of capital, but the potential for digital democratization of controls over the imaginary nature of value creation. But this is just a potential, a possibility, a figment that more often than not is appropriated by centralized and opaque private powers. The game industry is a testbed for new connections between storytelling and money creation. RLM: Monetary value was originally connected to the scarcity of precious metals, such as gold. Our entire monetary system seems therefore to function according to a logic of scarcity. Do you believe it is possible to reverse this logic into a logic of abundance? GS: The gold standard was a fiction itself, the “scarcity” is always produced by institutions that regulate confidence and access to credit. The key issue is not to fabricate abundance, but to question the institutions which produce scarcity out of any standard, gold or whatever. Central banks are at the service of private banks in the creation and management of scarcity. RLM: The promise that nanotechnology holds for our future is one of radical abundance (or so say transhumanists). The possibility of creating any kind of material substance through nanoengineering seems each day more feasible. What would this possibility entail in terms of systems of value exchange? GS: Nanotechnology, environmental concerns and grassroots appropriation of distributed knowledge are the frontiers of a new horizon of energy creation and management. Social groups in charge of managing scarcity for the sake of wealth and power concentration must be held accountable for the destruction of our future. Once this key political conundrum is accounted for, new systems of value exchange and even a non-mercantile society will come into existence. Revolutionary theorists such as Marx envisaged transformation via the extreme clash of contradictions between capital and labour. This approach has never led to a change in the systemic logic of scarcity for the sake of social control. We are once again facing the threshold of large scale societal change, but the outcome of the current crisis should come from our imagination, not from yet another paradox of abundance and scarcity. As long as we remain attached to the materiality of value, the illusion of freedom will but reinforce the massive manipulation of necessity. RLM: What do you think is the role of crowdfunding in this context? GS: Crowdsourcing as well as crowdfunding are examples of the peer to peer opportunities that come along with distributed computer power. However, the power structure behind wealth and scarcity creation may or may not be changed by crowd management. But it should not be taken at face value, so to speak. The stock market of course is an early form of crowdfunding without calling into question the proprietary framework of the companies offering their investment projects to the market. Any market is a form of crowdsourcing, that is to say, of distributed forms of supply and demand matchmaking. The wealth of networks, however, depends on the contractual ecosystem, the institutional framework, the channeling of social imagination, not on the purely quantitative distribution of bids and offers. I see economics as supply, demand and code. Once you have access to the code, once openness becomes part of the game, then there is a chance of crowd behavior becoming collective intelligence and sustainable imagination. RLM: Is the development of digital currencies headed towards a pluralistic ecology in which many micro currency systems co-exist, or is it penetrating the mainstream monetary system? If it is affecting the mainstream financial system, what would be its effect in the long-term? GS: The same issue is at stake both at local and global levels. The global system is, as a matter of fact, an unstable ecosystem of “micro currencies” whereas the dollar has so far exerted an overwhelming influence. Local currencies and private monies coexist with national currencies only to the extent that the Central Bank admits, for instance, that grassroots monetary emissions remain territorial and strictly connected to poverty. However, the question of how new developments in digital technologies and nanotechnologies might alter not only our current monetary systems but also our understanding of value in itself, is still an open question. (shrink)

Money does not stimulate receptors in mimicry of natural agonists; so, by definition, money is not a drug. Attractions of money other than to purchase goods and services could arise from instincts similar to hoarding in other species. Instinctual activities without evolutionary function include earning a billion and writing for BBS. (Published Online April 5 2006).

In this thesis I determine what is required in an account of money. I compare John’s Searle’s idea of institutions, as ontologically subjective, to Francesco Guala’s idea of an institution as a functional, rule-based equilibrium. I find both, as accounts of money, to be inadequate on their own. In response, I develop a new account of money which has functional components akin to Guala’s but with the addition of intentionality. This adds mind-dependence back into the account of (...) money but, if Khalidi’s theory of social kinds is correct, my account of money is still open to scientific investigation, because it might be kind of natural. (shrink)

Ranging from Plato to Marx, one can only find a few philosophers who have talked about money without detesting it. Naturally, economists are avoiding such an attitude. But they deliver only functional definitions, nothing which could give a hint at the essence of money. The essay tries to clarify it by delineating a currency as an ‘ens ficitivum’ – created by our semiotic activities, which have been analysed by Charles Sanders Peirce. So, the thesis is: Money is (...) basically a sign indicating at a present time one’s ability to handle future events. (shrink)

This article explores the relationship between gambling and capitalism. The subjective being of the compulsive gambler provides insight into the role of money in capitalism. Using the Lacanian approach of Žižek, money is analysed as a sublime object of capitalist ideology. In gambling, however, the subject engages money in a very direct encounter with the Lacanian `Real', circumventing the ordinary symbolic order of capitalism. This results in a momentary de-sublimation of money, stripping it of the metaphysical (...) properties otherwise vested in it by capitalism. For the compulsive gambler, the de-sublimation has become permanent, making it impossible for him to function as an ordinary capitalist subject. He has come too close to money, leaving him in a pathological state of being out of joint with capitalism. (shrink)

Functioning markets require a state that will enforce property rights; contracts mediated by money; and the prevalence of a certain type of morality that prevents people from cheating in complex exchange relationships. Monetary exchange abstracts from the personal loyalties that bind small groups together, but at the same time it creates an overarching commitment to norms that bind people more loosely in national societies—as long as monetary exchanges are enforced by the state. In the Soviet Union, conversely, the abolition (...) of money as a universal medium of exchange led both to a deterioration of the norms of impersonal morality and to a loss of state capacity. The state lost control of the economy to informal, personally binding economic networks, and it lost its monopoly on violence in competition with sub-state, personal enforcers of impersonal economic commitments between these networks. Thus, capitalism can be seen as diverting people from norms of loyalty to the members of the relatively small groups of which they are a part toward loyalty to the abstract norms that make it possible for anonymous people to deal with each other reliably. (shrink)

The medium of payment typically is defined as that which is generally accepted in payment for goods and services or in the settlement of debt. Perhaps because modern monetary systems function so well in providing media of payment, we seldom consider the question of why they enjoy the general acceptability by which they are identified. Yet, because monetary systems evolve and change, such basic questions warrant occasional re-examination to ensure that contemporary analysis does not, unwittingly, embody and foster the errors (...) of an earlier time. (shrink)

Summary John Locke intervened in two major debates in which the issue of species featured: (1) the question of whether species designations are based on real essences or only nominal essences (discussed in the Essay), and (2) the debate over the recoinage of English currency in the 1690s, in which Locke argued for a restoration of silver depleted by widescale clipping (discussed in his economic writings published between 1692–95). This article investigates Locke's position on the recoinage and considers alternative proposals (...) in the period, including those which advocated the introduction of a ‘new species’ of money in the form of credit, based on land. Locke opened the space, philosophically, for innovations in defining money, but endorsed a narrower conception of money as silver by weight alone (not by its stamp or denomination). His rationale for doing so exposes his attachment to shared systems of measurement, intersubjective agreement and ways of stabilizing meaning by reference to external criteria (in this case, the weight of silver, a measure that functioned internationally). This suggests a pattern of attempting to constrain the nominalism that his system otherwise foregrounded. (shrink)

Money and gossip in nineteenth-century Russian fiction act as combined forces that disrupt the narrative and the relationships between the main characters. The motifs of money are prominent in the novels of both major and minor Russian writers and when seen side by side, the function of the motifs of money becomes clear as a genre marker. The two writers discussed in this paper are Fyodor Dostoevsky and Yevdokia Rostopchina. By placing their works side by side, it (...) becomes evident that their treatment of money represents a similar artistic response to the changing world of Russian social relations in the nineteenth century and the emergence of a new value system replacing that of the old estate culture. More than that, the treatment of money in combination with the prominence of gossip as a structuring device, which moves the plots in Rostopchina’s and Dostoevsky’s novels, reflects the development of the novel as a genre. Rostopchina’s seemingly compliant demeanor conceals a more intricate and subversive agenda. Through her strategic use of feminine masquerade, Rostopchina not only anticipated modern theories of gender as a social construct but also employed a timeless tactic of encoding subversive messages within seemingly conventional works. What is of particular interest in this paper is the incorporation of the society tale into the novel and how this reflects the transformation of value in the nineteenth-century Russian novel. (shrink)

In Searle’s social ontology, collective intentionality is an essential component of all institutional facts. This is because the latter involve the assignment of functions, namely "status functions," on entities whose physical features do not guarantee their performance, therefore requiring our acceptance that it be performed. One counter-example to that claim can be found in Carl Menger’s individualistic account of the money system. Menger’s commitment to the self-interest assumption, however, prevents him from accounting for the deontic dimensions of (...) institutional facts. (shrink)

Since market scoring rules have become popular as a form of market maker, it seems worth reviewing just what such mechanisms are intended to do. The main function performed by most market makers is to serve as an intermediary between people who prefer to trade at different times. Traders who have the same favorite times to trade can show up together to an ordinary continuous double auction, and then make and accept offers to trade. But when traders have different favorite (...) times, a market maker can help them by first making offers that some of them will accept, and then later making opposite offers which others will accept. By adjusting prices in his favor, a market maker can even profit from providing this service. By making offers, however, a market maker opens himself up to the risk of losing to informed traders who know more than he about asset values. It is a complex and difficult task to choose the price and duration of offers in order to profit the most from intermediary trades while suffering the least from informed trades. This task requires subtle judgments about the relative fraction of informed and intermediary trades at different times, prices, quantities, and trading histories. No simple algorithm could reasonably claim to do this task optimally. Very active markets have little need for market makers, as anyone can trade at anytime. In markets with large but sporadic trades, a human will likely find it profitable to apply their considerable intelligence to the complex task of market making. The question is what to do for smaller less-active markets, which cannot afford such human attention. Trading may simply not happen there if no intermediary can be found to make such markets. A computer program with less than human intelligence that attempts to make markets runs the risk of being out-smarted by human traders. Humans might even figure out how to turn that program into a money pump, giving up cash each time it is run through some cycle of trades.. (shrink)

To this day, many theorists regard the commodity theory and the credit theory as the two main rival accounts of the nature of money. Yet cryptocurrency has revolutionized the institution of money in ways that most commodity and credit theorists could hardly have anticipated. Given that cryptocurrency is a new form of money, the question arises whether the commodity and credit theories can adequately account for it. I argue that they cannot. I first offer an interpretation of (...) the commodity and credit theories according to which these theories uphold differing claims about the origin of money, the ontology of money, and the function of money. I then argue that thus understood, neither theory can accommodate cryptocurrency. Finally, I develop a novel hybrid hylomorphic account of money which draws on aspects of both the commodity and credit theories, and I argue that this hybrid account can accommodate cryptocurrency. (shrink)

Lea & Webley's (L&W's) non-exclusive distinction between tool-like and drug-like motivators is insufficiently discriminating to say much about money that is useful, as the distinction's equivocal application to sex, food, and drugs shows. Further, it appears as though the motivations of problem gamblers are non-metaphorically like those of drug addicts. (Published Online April 5 2006).

A surprisingly large number of lottery prizes go unclaimed every year. This leads us to suspect that what people bet on is not only money, but also good mood. We conducted three studies to explain, from an emotional perspective, why people play lottery games. We first conducted two survey studies to assess mood state reported by online (Study 1a) and offline lottery buyers (Study 1b) at different stages of lottery play. The results revealed that participants’ highest mood appeared before (...) knowing whether they had won. In Study 2, we manipulated the means of reward (lottery tickets vs. cash) and compared participants’ mood changes at different stages of a rewards game in the laboratory. We found the following: first, lottery group participants were generally in a better mood; second, 42% of lottery group participants did not come to the laboratory to collect scratch cards; and third, lottery group participants took more time to return to the laboratory to check their tickets than participants in the cash group. In Study 3, we examined whether priming good or bad mood could influence participants’ preferences for cash versus lottery tickets. The results revealed that participants who were primed for poor mood had a higher preference for lottery tickets compared with their good mood counterparts. These findings suggest that what our participants sought in lottery play was not only money, but improved mood. (shrink)

Legality in the Global South suffers from problems of application by convenience. Some rules are applied, and some are not, depending on certain actors, such as the State, the stakeholders, or others. This undermines legitimation as constructed by legality and due process. These problems are connected to a wider complex formed by coloniality, internal colonialism, and a form of functional differentiation that limits autonomy of the different social systems. This complex of structural properties allows States and other actors to systematically (...) use one system against the other or—within a given system—one level of rules against the other. This was the case in Ecuador: in the initial months of quarantine due to Covid-19, the government took decisions about external state bonds following international legislation—and quite contrary ones related to local work contracts. Once again, legality followed different paths in diverse cases. Ecuadorian economic authorities accept and respect conditions on external public bonds which are protected by some complex and specific clauses to secure the payment. The same authorities have different practices towards international and national legislation that were organized in the sense of legal subsidiarity. This text will explore reasons and effects of legal de-differentiation in the Global South in times of crisis. The Ecuadorian case in time of Covid-19 helps to understand how structural problems related to the lack of autonomy of the legal system are perpetuated and lead to effects of convenient political action. (shrink)

In this Article I argue that the global credit crunch of 2007-2009 is the result of the multifaceted phenomenon of liquidity illusion. Fundamentally, the problem of liquidity illusion derives from the hollow conceptualization of "liquidity" in mainstream financial theory and practice. Represented most recently by the market completion theory, this paradigm has led to a widespread misunderstanding of the dynamics of the relationship between the process of financial innovation and the liquidity of the financial system. In order to unpack the (...) political economy of liquidity illusion from other factors in the leadup to the global credit crunch, this Article builds upon Hyman Minsky’s vision of financial innovation and crisis. Challenging mainstream views of the liquidity-enhancing process of financial innovation, I identify the three pillars of liquidity illusion in the recent 2002-2007 bout of securitization: a) the paradigm of self-regulating finance; b) the role of Ponzi finance; and c) the function of private authority, namely credit rating agencies. (shrink)

In his early career, Kenneth Millar, better known as Ross Macdonald, emulated the style of Dashiell Hammett and Raymond Chandler. By the 1960s he had established himself as a distinct voice in the hardboiled genre. In his Lew Archer series, he conveys the complexity of his characters and settings primarily by the use of metaphors. In his 1966 novel Black Money the device performs three functions. In the case of minor characters, the author uses metaphors to comment on (...) Californian society. Concurrently, metaphors describing major characters allow him to develop their dramatic arcs, whereas the recurring elements of the leitmotif serve to demonstrate the narrating detective’s growing concerns with the ongoing investigation. Arguably, it was Macdonald’s use of metaphors that helped define his unique voice. (shrink)

This paper reports an experimental comparison of attitudes toward time and toward money in experience-based decisions. Preferences were elicited under rank-dependent utility for prospects with two or three consequences expressed either in time or in monetary units. Probabilities were unknown but learned through sampling. More specifically, time and money were compared under two conditions. In a first experiment, both consequences and probabilities of prospects were unknown and learned through sequential sampling. In a second experiment, the possible consequences were (...) revealed after the sampling. A real incentive system was implemented for both time and money. The heterogeneity of preferences was assessed for time and for money through individual and mixed modeling estimations. We observe that the nature of consequences (time or money) modifies probability weighting in terms of elevation and sensitivity. Subjects exhibit more optimism and less sensitivity to probability changes when deciding about time than about money. Revealing the consequences impacts the shape of the utility function and leaves probability weighting unchanged. We also observe that the real incentives have no effect except for the reduction in decision errors. This effect is stronger for money than for time. (shrink)

I propose a novel account of the essentially expressive nature of reparations. My account is descriptive of new practices of reparations that have emerged in the past half-century, and it provides normative guidance on conditions of success for reparative attempts. My account attributes to reparative attempts a dual expressive function: a communicative function that requires the gesture to carry a vindicatory message to victims; and an exemplifying function that requires the gesture to model the right relationship that was absent or (...) violated in the wrongdoing to which reparations respond. This account is able to explain the breadth and variety of measures now recognized as reparations; how reparative attempts can fail in two distinct ways; and why material compensation is never sufficient and not always necessary to reparations. (shrink)

The article turns to Deleuze and Guattari’s concept of state capitalism and their theorization of money and debt in their critique of capitalism to develop an analysis of the governmental management of the current crisis determined by ordo- and neoliberalism. The paper argues that analyses which fail to properly recognize the power of capital to determine both state apparatuses and economic policy thereby fail to grasp the real functioning of money, debt and the Euro in the crisis and (...) end up unwittingly supporting liberalism. This is true of positions such as heterodox theory that, though critical of conventional and neoliberal political economy, nevertheless continue to uphold the state as an independent or mediating mechanism in relation to the power of capital. The neglect of the role which money plays in the strategies of capital to control both the creation of value and the functioning of the state is to be found even in Foucault’s genealogy of neoliberalism, a neglect which undermines his analysis of power. The paper highlights the implications of the standpoint of state capitalism for a more incisive analysis of the current crisis that reveals what is at stake for political struggles. (shrink)

This article presents an interdisciplinary analysis of the glamorization of the courtesan image as proposed by Baz Luhrmann’s film Moulin Rouge. The film sparked the appearance of high-street fashion inspired by the image of the 19th-century Parisian courtesan, which prompted the authors to examine how and why such images might appeal to female consumers. The critical analysis reaches beyond the images themselves to identify and discuss the modes of circulation of such images, and their function in achieving both the material (...) ends of capitalism and the promotion of one of the system’s core values. Moreover, the article hopes to illustrate the possibilities offered by integrating cultural and structural analyses of current social phenomena. (shrink)

In the epoch of Empire, the American economy is sustained by a global monetary circuit totally different front that of the imperialist period. Whilst the imperialist countries were constituted as « centres » of production, the contemporary US is no longer just a centre of absorption and evacuation of money which necessitates the existence of a financial pump to the outside. In becoming that pump, the Japanese economy became integral to the global market. The imperial monetary circuit also (...) class='Hi'>functions as a mode of capture, particularly of value, that one can qualify as « financial » with regard to the classic « exploitation » of workers. This paper tries to demonstrate that ultimately the two modes of capture are nonetheless achieved by a single function of money. (shrink)

ABSTRACTThe increasing recognition of the negative impact of income inequality has highlighted the importance of taxation which can function as a redistributive mechanism. Previous critical social psychological research found that talk about restricting the welfare state, that is funded through tax, is formed of ideology that supports the maintenance of income inequality. Therefore, this research explores how speakers use talk about tax to justify income inequality during a UK BBC radio discussion, ‘Moral Maze: The moral purpose of tax’ which involved (...) public figures discussing the role of tax. This programme was analysed from a critical discursive psychological perspective. It was found that two contrasting constructions of tax were presented: tax as a collective responsibility or tax as an individual burden, whereby speakers drew on social justice and individualistic ideology respectively. Arguments for high tax rates are problematic due to the acceptability of inequality in a meritocracy. By presenting wealthy individuals as more deserving than the less affluent, arguments for higher tax come to be challenged. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Beginning in the 20s of the last century, historical research into Eiximenis's life and writings has thrown into relief his contribution to the language and political ideas of the kingdoms and towns of the Catalan-Aragonese Crown. Of fundamental importance has been the work of medievalists from North America, and in particular that of Canadian scholars during the last decades of the twentieth century.More recently, a number of studies have (...) underlined the decisive contribution of Eiximenis – a representative of a European textual tradition among friars of the Minor Observance that extended from Oxford to Florence – to the establishment of a system of ethical values for the economic sphere and for trading practices that continued to be developed by members of the Franciscan Order throughout the high middle ages and early modern period.As a follow-up to these studies, I believe that a program of textual analysis and systematic investigation of Eximenis's work could provide further information about the range and significance of his political thinking, based as it was on applying, in typically Franciscan fashion, experimental observation to gain an understanding of the nature both of the societas and of the market, the latter being thought of as a defining expression of civic institutions in Western Europe. This same experimental approach can be found in Franciscan thinking from the catalan-aragonese realm not only in the work of Arnau de Vilanova and Ramon Llull, but also in that of Pere Tomas and Anselm Turmeda, two figures fundamental to the preparation and political engagement of the Friar of Girona.1. The concept of contractIn Eiximenian texts, the communitarian dimension is defined as one that is of necessity based on contract. It is expounded in the long opening section of the Dotzè del Crestià, where Eiximenis outlines the political value of the civitas, as well as setting out the elements that constitute civic life.Borrowing from Aristotle's discussion in the First Book of the Politics , the Franciscan friar strongly affirms that one of the principal reasons behind the civitas is the "necessitat de contractes," the need for contracts. Going far beyond the highly qualified analysis of money and coinage set out by the Greek philosopher, Eiximenis here maintains that the aims of the community is the profit that the citizenry realises by means of different forms of exchange, through buying and selling, through contracts, and through trading. Moreover, that the binding nature of trading-contracts is a matter of concern not of the city in the narrow sense, but of each and every kind of human social organization.Even before contract-law, or, better said, conventional or foral procedure, Eiximenis views the idea of the contract as an essential part of the ethical and organizational principles of living as a community, the essence of the civitas. And it is of great significance that when he is discussing the value and function of money, Eiximenis chooses to call the sorts of exchange that to-day we term economic or financial les civils conmutacions, or exchanges between citizens.These lexical hints allow us to capture the strength of meaning and value, the ethical perspective by which the Gerundense defines the inextricable union of the market and civic society. But it is not only an analytical perspective, significant as that is, that unites market and civic ethics; we are presented with a value judgment of contract and economic exchange as elements that determine the very idea of civilitas.The "bona civilitas," an expression that can be roughly translated as "good civic culture," is in fact founded on a concept of economic ethics that has as its distinguishing feature the logic of profitable exchange, of the distribution of that profit, of contractualization, and of the circulation of goods and money. It is characterised by redefining the anti-value of avaritia as a real.. (shrink)

The impact of “love of money” on different aspects of consumers’ ethical beliefs has been investigated by previous research. In this study we investigate the potential impact of “love of money” on a manager’s ethical decision-making in marketing. Another objective of the current study is to investigate the potential impacts of extrinsic and intrinsic religiosity on ethical marketing decision-making. We also include ethical judgments as an element of ethical decision-making. We found “love of money”, both dimensions of (...) religiosity, and ethical judgment to have significant impacts on ethical intentions in a marketing situation. In addition to providing an important contribution to the business ethics literature, the findings also have important managerial implications. (shrink)

Lapses in ethical conduct by those in corporate and public authority worldwide have given business researchers and practitioners alike cause to re-examine the antecedents to personal ethical values. We explore the relationship between ethical values and an individual’s long-term orientation or LTO, defined as the degree to which one plans for and considers the future, as well as values traditions of the past. Our study also examines the role of work ethic and conservative attitudes in the formation of a person’s (...) long-term orientation and consequent ethical beliefs. Empirically testing these hypothesized relationships using data from 292 subjects, we find that long-term perspectives on tradition and planning indeed engender higher levels of ethical values. The results also support work ethic’s role in fostering tradition and planning, as well as conservatism’s positive association with planning. Additionally, we report how tradition and planning mediate the influence of conservatism and work ethic on the formation of ethical values. Limitations of the study and future research directions, as well as implications for business managers and academics, are also discussed. (shrink)

This chapter discusses cryptocurrency, distributed ledger technology and blockchain tokens within the context of technological innovation, the history of money and accounting practices, and their multiple functionalities beyond those of standard currencies. This discussion is motivated by the design of cryptocurrencies for specific community needs, and to reflect anti-rival, positive sum value.