The economy as a political creation

Arild Vatn

Chapter 10 in Rethinking Ecological Economics, 2026, pp 163-181 from Edward Elgar Publishing

Abstract: This chapter is focused on the history of markets, money and the kind of property rights and economic actors that appear over time. The mainstream sees economic systems – markets and money – as natural phenomena and as reflecting human nature. People like to exchange goods, and money was invented to reduce transaction costs. Historic material shows that both markets and money are social/political creations. Money appeared first as credit, and markets evolved early on not least as an effect of war. Credit relations created social bonds. These were gradually turned into formalized debt relations and, as coinage and other on-the-spot measures of clearance became important, impersonal relations became more prominent in economic transactions. As capitalist relations grew, markets were changed from enabling exchanges in use values to become the arena for profit-making. That process was facilitated by colonialism, privatization of land and the creation of economic actors like the corporation.

Keywords: Historical assessments; Markets; Money; Corporation; State; Modern monetary theory (search for similar items in EconPapers)
Date: 2026
ISBN: 9781803921839
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