Introduction

Kozo Mayumi () and Ansel Renner ()
Additional contact information
Ansel Renner: Autonomous University of Barcelona

Chapter Chapter 1 in Reconsidering the Privileged Powers of Banks, 2023, pp 1-15 from Springer

Abstract: Abstract This chapter overviews the book, which critically and centrally examines the privileged powers conferred on commercial banks, namely the ability to create money from nothing together with the capacity for issued money to grow over time in tune with a positive interest rate. The two abilities can be seen to defy the conservation and entropy laws of thermodynamics. The chapter introduces the dual natures of money, wealth, and real capital, demonstrating their simultaneous statuses as individual affluence and collective biophysical debt. It further shows that hegemonic obsession over individual pecuniary interests is as a surefire ticket to community-level tragedy and proposes a democratic control over new money issuance and its distribution. The chapter stresses the intricacies of societal self-preservation, the biophysical burden of real capital, and the universal exchangeability of money. A reframing of the contemporary definition of wealth is suggested alongside, ultimately, a novel, responsible approach to economic development.

Keywords: Commercial banks; Money creation; Thermodynamics; Dual nature of money; Biophysical debt (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-99-6058-3_1

Ordering information: This item can be ordered from
http://www.springer.com/9789819960583

DOI: 10.1007/978-981-99-6058-3_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().