The Ethics of Money Production

Hülsmann, Jörg Guido; Scrive, Lucas

doi:10.1007/978-94-007-6729-4_19-1

Cited by 15 publications

(26 citation statements)

References 22 publications

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“…Subsequently, the gold-exchange standard was replaced with paper money, a standard decreed by the political or monetary authority, under which the banknotes issued by the central bank became the reserve currency, replacing metallic money. us, the banknote became, from money substitute for the previous monetary standards, a monetary standard in itself (Hülsmann, 2008;Mises, 1980). In the new setting, the bank deposit, or bank electronic money, has kept the role of money substitute, but instead of being money substitute for the old commodity or commodityexchange standard, it is now a money substitute for paper money.…”

Section: The Role Of the Banknote In Modern Monetary Developmentsmentioning

confidence: 99%

From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalization

Smirna¹

2015

Journal of International Studies

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e advent and international proliferation of unconventional monetary policy is the logical consequence of interventionism in the monetary and banking eld. It was made necessary by central bank policies of managing and constantly lowering the interest rates. Once the zero lower bound is reached, the next logical step for the monetary authorities is to look for ways to continue lowering rates through it. To abolish cash and institute the exclusive use of bank deposits is one enticing proposal to overcome this limitation. us, the potency of monetary policy can be preserved by the new capacity of charging negative nominal interest rates. However, the arguments against cash are not new. We are going to show in this paper that the same arguments that were previously used to impose banknotes are today used to forbid them. From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalizationTudor Gherasim Smirna "From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalization

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Section: The Role Of the Banknote In Modern Monetary Developmentsmentioning

confidence: 99%

From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalization

Smirna¹

2015

Journal of International Studies

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“…Although inflation has a storied history among economists, focus on its legitimacy has been insignificant (Bagus et al. ; Balac ; Hülsmann ). Writing in the late sixteenth century, the Spanish scholastic Juan de Mariana outlined the coercive nature of inflation (Huerta de Soto , p. 6).…”

Section: Inflation—veiled and Costlymentioning

confidence: 99%

“…David Hume's monetary writings in the eighteenth century assessed unit changes of the monetary stock as valuational changes that affect the unit value of other individuals' money holdings (Hume ). More recently, Hülsmann () and Howden () have delved into the history of relations between monetary economics and ethics. It is, however, unfortunate, not too surprising, that there has been a general neglect for attention heeded to ethical implications of inflation.…”

Section: Inflation—veiled and Costlymentioning

confidence: 99%

“…It is, however, unfortunate, not too surprising, that there has been a general neglect for attention heeded to ethical implications of inflation. As Hülsmann (, p. 87) explains:

Economists are reluctant to dwell on the moral dimensions of social facts, and rightly so, because moral questions are outside their customary purview. But one does not need to be a moral philosopher to know that certain incomes are illegitimate; that they derive from a violation of the fundamental rule of society …”

Section: Inflation—veiled and Costlymentioning

confidence: 99%

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Causes and Consequences of Inflation

Bagus

Howden

Gabriel³

2014

Business and Society Review

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While ethical implications of direct taxation systems have recently received renewed attention, a more veiled scheme remains unnoticed: inflation. We overview the causes of inflation and assess its consequences. Salient wealth redistributions are a defining feature of inflation, as savers and fixed income individuals see a relative wealth reduction. While avoiding this "tax" is difficult in many instances due to the primacy of money in a monetary economy, the tax codes of most developed countries allow avoidance techniques to be employed. We analyze three ways that inflation may be avoided in an attempt to preserve personal wealth, as well as the consequences of such practices.

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“…A growing chorus is beginning to chime of the benefits of an ethical analysis to some monetary practices (Hülsmann 2008, Howden 2010a, Block & Davidson 2011. 1 We augment these views by providing a legal/economic foundation to demonstrate exactly what is ethically suspect about many predominant banking practices.…”

Section: Introductionmentioning

confidence: 99%

Some ethical dilemmas of modern banking

Bagus

Howden

2013

Bus Ethics Eur Rev

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How ethical have recent banking practices been? We answer this question via an economic analysis. We assess the two dominant practices of the modern banking systemfractional reserves and maturity transformation -by gauging the respective rights of the relevant parties. By distinguishing the legal and economic differences between deposit and loan contracts we determine that the practice of maturity transformation (in its various guises) is not only ethical, but also serves a positive social function. The foundation of the modern banking system -the holding of fractional reserves against deposits -is, however, problematic from economic, legal and ethical angles. Starting from a microanalysis of money´s function, a reassessment of the current laws concerning the practice is encouraged, with the aim not only to rectify economic irregularities, but also to realign depositors' rights with the obligations of the banking sector.

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The Ethics of Money Production

Cited by 15 publications

References 22 publications

From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalization

From commodity standard to deposit standard: the near completion of a secular cycle in monetary globalization

Causes and Consequences of Inflation

Some ethical dilemmas of modern banking

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