Posted: 15 Jun 2003
Date Written: 1997
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: Suggested Citation
Goodhart, Charles, Two Concepts of Money, and the Future of Europe (1997). Available at SSRN: https://ssrn.com/abstract=41726