Endogenous money, liquidity preference and confidence: for a qualitative theory of money

Edwin Le Heron

Post-Print from HAL

Abstract: Money is an institution that can only function when it perfectly manages the relationship between sovereignty and confidence. The foundation of this monetary relationship can focus on two directions: either a top-down process based on sovereignty so as to justify public confidence in the money; or a bottom-up process starting from building confidence through coordination and learning among individuals to explain the organization of a sovereign monetary authority. Starting from the three hierarchical levels of confidence (methodical, hierarchical and ethical) highlighted by Michel Aglietta and André Orléan (2002), the first process emphasizes the importance of a sovereign political power as the foundation of confidence and multiplies the rules and norms necessary for methodical confidence, while being a guarantor of the social values in the monetary compromise issuing from ethical confidence. The monetary order is based on the exercise of hierarchical political power from top to bottom. Money thus becomes a ‘total social fact' (Simmel quoted in Aglietta, 2008, p. 4).

Keywords: Money; Qualitative theory (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Louis-Philippe Rochon; Hassan Bougrine (eds.). Credit, Money and Crises in Post-Keynesian Economics, Edward Elgar Publishing, pp.133-151, 2020, New Directions in Post-Keynesian Economics series, 9781786439543. ⟨10.4337/9781786439550.00018⟩

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

Related works:
Working Paper: Endogenous Money, Liquidity Preference and Confidence: For a qualitative theory of money (2019)
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:hal:journl:halshs-02993143

DOI: 10.4337/9781786439550.00018

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().