“Synthesizing State and Spontaneous Order Theories of Money”

I have long been impressed with the young guard at George Mason University. Now two of them – Alex Salter and Will Luther – is out with a new Working Paper – “Synthesizing State and Spontaneous Order Theories of Money”. It is very interesting stuff and I highly recommend it to anyone who is interested in monetary theory. Here is the abstract:

“What role does government play in determining the medium of exchange? Economists weighing in on the issue typically espouse one of two views. State theorists credit government with the emergence and continued acceptance of commonly accepted media of exchange. In contrast, spontaneous order theorists find little need for government, maintaining that money emerges and continues to circulate as a result of a decentralized market process. History suggests a more subtle theory is required. We provide a generalized theory of the emergence and perpetuation of money, informed by both approaches and consistent with recent theoretical and empirical advances in the literature.”

PS Will is now an Assistant Professor at Kenyon College, while Alex is a PhD fellow at GMU.

About these ads
Leave a comment

3 Comments

  1. Alex Salter

     /  September 2, 2012

    Thanks for the shout-out, Lars!

    Reply
  2. Thanks for directing our attention to this paper. A you can see from the trackback, I cited it (and you) in a recent post on disputes about the origins of money.

    Reply
  1. Skepticlawyer » A fight over money

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 3,902 other followers

%d bloggers like this: