Keynes after 75 Years: Rethinking Money as a Public Monopoly

Abstract:     
In this paper I first provide an overview of alternative approaches to money, contrasting the orthodox approach, in which money is neutral, at least in the long run; and the Marx-Veblen-Keynes approach, or the monetary theory of production. I then focus in more detail on two main categories: the orthodox approach that views money as an efficiency-enhancing innovation of markets, and the Chartalist approach that defines money as a creature of the state. As the state’s “creature,” money should be seen as a public monopoly. I then move on to the implications of viewing money as a public monopoly and link that view back to Keynes, arguing that extending Keynes along these lines would bring his theory up to date.

Number of Pages in PDF File: 20

Keywords: Money, Public Monopoly, Monetary Theory of Production, Keynes, Marx, Veblen, Knapp, Chartalism

JEL Classification: B14, B15, B22, B52, E12, E40, E42, E50, E51, E52, G14, G21, H1 H3, H4, H44

working papers series