Fiat versus Representative Money under Debate, or How Right Keynes Was Once (!)

Theoretical and Applied Economics, 2011

14 Pages Posted: 19 Dec 2012

See all articles by Liviu Andrei

Liviu Andrei

National School for Political Sciences and Public Administration

Date Written: May 18, 2011

Abstract

The applied economics understands the concept of money nearly exclusively through the quantitative theory, which certainly remains one of the greatest theories in this topic area. On the other hand, the history of money – be it old or contemporary -- finds two other “nonquantitative” theories as more relevant in the respect that they are able to “cover” this history – these are representative and fiat money. Then, there comes the interesting point: this history “covered”, meaning a full explaining of facts would be made by the two theories and images of the same money just “together”—which is impossible in basic good sense terms, as money (as anything else) cannot be real and fictitious value in the same time.

Keywords: fiat money, representative money, seniorage, barter (and its system), commodity money, international monetary system (IMS), macroeconomics, optimum currency area (OCA), economic theory

JEL Classification: E00, E52

Suggested Citation

Andrei, Liviu, Fiat versus Representative Money under Debate, or How Right Keynes Was Once (!) (May 18, 2011). Theoretical and Applied Economics, 2011. Available at SSRN: https://ssrn.com/abstract=2191211

Liviu Andrei (Contact Author)

National School for Political Sciences and Public Administration ( email )

Povernei Street, 6, Sector 1
Bucharest
Romania

Register to save articles to
your library

Register

Paper statistics

Downloads
42
Abstract Views
407
PlumX Metrics