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Money pp 99-135 | Cite as

The Nature of Money

  • Rudolf Richter

Abstract

This chapter deals with two problems: the economic justification of the use of money and the institutional framework of a money economy. The two are closely interrelated. We shall analyze both in terms of the concepts of institutional economics developed in the preceding chapter. In particular, we shall use, in addition to the traditional transaction costs approach, the concepts of a legitimate order and its guarantee to explain the use of money. First it will be useful to describe and systematize the institutional framework of a money economy. Next we shall give reasons for the use of money and the existence of its institutional framework - the currency order. Finally we shall deal with the guarantee of the currency order, i.e., with the relation between the state and the currency.

Keywords

Transaction Cost Central Agent Paper Standard Currency Community Price Target 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1989

Authors and Affiliations

  • Rudolf Richter
    • 1
  1. 1.Department of EconomicsUniversität des SaarlandesGermany

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