The state, the market and the euro. Chartalism versus Metallism in the theory of money

Book abstract:

Political control over money supply, which stands at the centre of the argument for sovereignty in this area, might be said by many to have more to do with politicians' appetite for the exercise of power than the actual ability to stabilise prices. Money as a creation of the state (or as some might say a consequence of the state) is debated in comparison with money as a creation of individuals seeking a means of exchange. These theories labelled 'C' and 'M' are subjected to examination by an illustrious group of theorists some of whom are economists, a political scientist and a historian. The debate is particularly relevant to the euro question which sees a separation of fiscal authority and monetary powers. 'M' theory enthusiasts applaud this divorce of powers, elevating it to the level of raison d'être. This and many other issues of fundamental importance in contemporary monetary theory and policy are discussed.
The work will interest academic monetary, financial and political economists as well as policy makers, financial analysts and journalists.
Stephanie A. Bell is Assistant Professor of Economics at the University of Missouri, Kansas City.
Edward J. Nell is the Malcolm B. Smith Professor of Economics in the Graduate Faculty at the New School University, USA.

• Primary Source