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A. Money as home-grown credit A. Money as home-grown credit
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A paper promise as value: the idea of credit A paper promise as value: the idea of credit
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The modern touchstone: functionality The modern touchstone: functionality
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Sovereignty and money Sovereignty and money
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B. Money as traders’ silver B. Money as traders’ silver
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Defining money: the medium of “all the civilized and trading parts of the world” Defining money: the medium of “all the civilized and trading parts of the world”
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Socializing money: exchange as agency and origin Socializing money: exchange as agency and origin
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Naturalizing money: from count to weight Naturalizing money: from count to weight
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9 Re-theorizing money: The struggle over the modern imagination
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Published:November 2014
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Abstract
As they reinvented money, the English debated its definition; their conclusions influenced the monetary policies they adopted in the future. According to one group, money was a form of domestic credit. The government could create money out of any substance as long as it anticipated revenues reliably. The approach identified money as a public resource, authored by Parliament, and designed pragmatically. A public currency, Exchequer bills, issued under this theory. According to John Locke and the Whig Junta, money was instead a commodity, like silver, that came to hand as traders made exchange outside of political borders. In that case, the agency of individuals “made money” and the government’s role was merely to guarantee the material content of coin. Locke’s approach informed both the Great Recoinage that occurred in 1696 and much subsequent economic theory.
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