An Apology of money Export

@article{citeulike:6059954, abstract = {General options for monetary systems, in particular the creation of fiat money, as well as its appropriation in various setups is discussed. We identify private banks as the main source of money through monetization of assets and future profits. The asset value is determined by subjective beliefs and fantasies loosely bound by market constraints. One may imagine such a monetary system as being "suspended in belief." The interest levied by banks in return for money created via monetizing future profits systematically reallocates resources towards the financial institutions, and away from industrial and manual production, farming and labor. Unfortunately, the alternatives appear to be even more troublesome than the present state of affairs. Any system based on interest-free fiat money creation, in order to avoid hyperinflation through excessive borrowing of "free" debt, has either to rely on unjustifiable privileges or chance. And any system based on commodity instead of fiat money is heavily depending on the quantity of commodities, and also incapable of waging or defending against war through the effective monetization of future loot or loss.}, archivePrefix = {arXiv}, author = {Svozil, Karl}, citeulike-article-id = {6059954}, citeulike-linkout-0 = {http://arxiv.org/abs/0811.3130}, citeulike-linkout-1 = {http://arxiv.org/pdf/0811.3130}, day = {30}, eprint = {0811.3130}, keywords = {economics}, month = {Oct}, posted-at = {2009-11-03 11:30:02}, priority = {2}, title = {An Apology of money}, url = {http://arxiv.org/abs/0811.3130}, year = {2009} }

TY - JOUR ID - citeulike:6059954 L3 - citeulike-article-id:6059954 N2 - General options for monetary systems, in particular the creation of fiat money, as well as its appropriation in various setups is discussed. We identify private banks as the main source of money through monetization of assets and future profits. The asset value is determined by subjective beliefs and fantasies loosely bound by market constraints. One may imagine such a monetary system as being "suspended in belief." The interest levied by banks in return for money created via monetizing future profits systematically reallocates resources towards the financial institutions, and away from industrial and manual production, farming and labor. Unfortunately, the alternatives appear to be even more troublesome than the present state of affairs. Any system based on interest-free fiat money creation, in order to avoid hyperinflation through excessive borrowing of "free" debt, has either to rely on unjustifiable privileges or chance. And any system based on commodity instead of fiat money is heavily depending on the quantity of commodities, and also incapable of waging or defending against war through the effective monetization of future loot or loss. TI - An Apology of money KW - economics AU - Svozil, Karl PY - 2009/Oct/30/ UR - http://arxiv.org/abs/0811.3130 ER -