Critical Analysis of Theoretical Issues Regarding the Nature of Money; Provision of an Alternative Defintion

Document Type : Original Article

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professor

Abstract

A review of theoretical studies in the field of money suggests that the type of definition and view of monetary theorists and decision makers on the phenomenon of money can be considered as the main starting point for discussing the design of money creation arrangements in the economy. Using a descriptive-analytical method based on deductive reasoning and qualitative study in the framework of economic concepts, this article evaluates the theories on the definition and nature of money and based on the implications obtained from it, an alternative definition of "Money" offers. Based on the results of the present study, it seems that each of the theories of metallurgy, chartalism and other theories close to any spectrum has not paid the right attention to defining and explaining what money is; In such a way that the approach and position of the mentioned theories in defining money and determining its examples can be discussed and distorted even from the functionalist and consensual definition of money, these theories have tried to provide a definition of money that includes the most And provide justification for monetary events up to its age. While from the perspective of the present study, a principled confrontation with the common definition of money (based on its three functions), will require adopting a normative approach and avoiding a positive approach to it. In addition to the well-known triple functions, there are other vital tasks for money that need to be defined.

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References

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Economic Strategy
Volume 10, Issue 38 - Serial Number 38
November 2021
Pages 499-531

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