Two Concepts of Money, and the Future of Europe

Posted: 15 Jun 2003  

Charles Goodhart

London School of Economics & Political Science (LSE) - Financial Markets Group

Date Written: 1997

Abstract

There has been a continuing debate between those who argue that the use of currency was based essentially on the power of the issuing authority - i.e. that currency becomes money primarily because the coins are struck with the insignia of majesty, and not so much because they happen to be made of gold, silver and copper, - and those who argue that the value of currency depends primarily, or solely, on the intrinsic value of the backing of that currency.

JEL Classification: E40, F31

Suggested Citation

Goodhart, Charles, Two Concepts of Money, and the Future of Europe (1997). Available at SSRN: https://ssrn.com/abstract=41726

Charles A.E. Goodhart (Contact Author)

London School of Economics & Political Science (LSE) - Financial Markets Group ( email )

Houghton Street
London WC2A 2AE
United Kingdom
0207 955 7555 (Phone)
0207 242 1006 (Fax)

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