Not all money is created equal: The concept of a hierarchy of money

Suchánek Marián ()
Additional contact information
Suchánek Marián: Department of Economics, Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic

Review of Economic Perspectives, 2024, vol. 24, issue 2-3, 57-74

Abstract: The concept of a hierarchy of money or the idea that a number of instruments constitute money and that they are hierarchically related to one another is relatively recent and yet quite widespread. However, it is argued, that its comprehension differs. The most elaborated cases in which differing treatments of the term can be found are Modern Money Theory (MMT) and the Money View. At first sight, the MMT’s model of money hierarchy focuses on a hierarchy within a specific unit of account whereas the Money View perceives hierarchy not only within an individual unit of account but also across various units of accounts. But, as is shown, differences are more fundamental. It is argued that different comprehension can be explained by the different distinctions between money and credit and concept of monetary sovereignty within each approach rather than the concept of hierarchy itself. The concept of hierarchy acts, in fact, as a framework that ensures consistency in the use of different money instruments on those level.

Keywords: Hierarchy of money; Modern money theory; Money view; Monetary sovereignty; Nature of money (search for similar items in EconPapers)
JEL-codes: B26 B52 E12 E42 E51 N20 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/revecp-2024-0004 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:24:y:2024:i:2-3:p:57-74:n:1001

DOI: 10.2478/revecp-2024-0004

Access Statistics for this article

Review of Economic Perspectives is currently edited by Antonín Slaný

More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla ().