Between Rules and Power: Money as an Institution Sanctioned by Political Authority

Abstract

The aim of this paper is to combine the state theory of money with institutionalism. These theoretical traditions have a lot in common and this paper is a further attempt to clarify the connections and benefits of their relations. Recent developments in social ontology as well as the expansion of the theoretical analysis of institutions have provided new tools and new sets of arguments in support of such an endeavor. A conception of money that combines institutionalism with chartalism does not need to suffer from the shortcomings and the inconsistencies of the descriptions of money within commodity theory, while it subsequently enjoys sounder ontological foundations. This framework of study can also address questions in which the neoclassical analysis of money has proved unable or misleading; it can provide a dynamic account for the evolution of money and a clear understanding of the relation between money and technology.

Keywords:

• institutions
• collective intentionality
• definition of money
• chartalism
• technology