chapter  11
Beyond Modern Academic Theory of Money
Pages 17

Introduction Recent advances in money theory make it necessary for economists (and for social scientists in general) to reconsider their views about money;1 not because these advances are irresistible and convincing but because they create strong incentives to a critical re-examination of what economic theory of money is about. The main conclusion of such a re-examination is the ambivalence of the new money theory. Modern theoreticians of money wrongly attribute to money the role of a social memory, but they rightly demonstrate that, in a very special case, money performs a decentralized control of individual actions which makes market economies possible.