ABSTRACT
This chapter outlines the social and economic framework for the theory of money. The competing exogenous and endogenous theories of money have important implications for central banks’ objectives in managing money, the central banks’ objectives themselves being subject to debate. Governments and central banks will have to look at the theory of money as the theoretical underpinning of how to allocate means of payment to individuals and entities. Macroeconomics and the theory of growth are profoundly influenced by money. The financing of the state is a critical issue where the theory of money meets macroeconomics. An economic theory that takes basic concepts such as inflation and utility functions as a priori concepts cannot be considered an empirical theory. Faced with automation making humans redundant, weak demand, and stagnant economies, the uniform distribution of money is being seriously discussed and experimented with.
