Even inconvertible money is credit money : Theories of credit money in Japanese Marxian economics from the banknote controversy to modern Uno theories

 

    My new article (note) has just been published. 

Abstract

        Since the suspension of the gold standard, many have considered that money becomes fiat money with no intrinsic value. Although theories of endogenous money supply assert that commercial bank lending supplies credit money, even they assume that the credit money is a promise to pay fiat money issued by central banks or states.

　　However, some Japanese Marxian economists have advocated that inconvertible money, including central bank money, is credit money, and not fiat money. Significantly, they distinguish between “inconvertible” and “fiat.”

　　This paper quotes and translates some theories from the banknote controversy to modern Uno theories in Japan. Then, we argue that the commodity value underlies credit money and that money can take multiple polymorphic forms with respect to the assets backing the value of issued money.

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