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Georg Friedrich Knapp, a German economist, invented the term "chartalism" in his State Theory of Money, which was published in German in 1905 and translated into English in 1924. The name derives from the Latin charta, in the sense of a token or ticket. [2] Knapp argued that "money is a creature of law" rather than a commodity. [3]
At any rate, Simmel maintains that intellect is a tool and, as such, it lacks an intrinsic sense of direction and can be put to use for different purposes. Rationality originates from the objective, purely arithmetic nature of money, and is mirrored by the tenet that law is equal for everyone and that in a democracy all votes are equal. The ...
In economics, money illusion, or price illusion, is a cognitive bias where money is thought of in nominal, rather than real terms. In other words, the face value (nominal value) of money is mistaken for its purchasing power (real value) at a previous point in time.
At the most basic level, this Ricardian law of value specified "labor-content" as the substance and measure of economic value, and it suggests that trade will—other things being equal—evolve towards the exchange of equivalents (insofar as all trading partners try to "get their money's worth"). At the basis of the trading process is the ...
The law states that any circulating currency consisting of both "good" and "bad" money (both forms required to be accepted at equal value under legal tender law) quickly becomes dominated by the "bad" money. This is because people spending money will hand over the "bad" coins rather than the "good" ones, keeping the "good" ones for themselves.
Legal moralism is the theory of jurisprudence and the philosophy of law which holds that laws may be used to prohibit or require behavior based on society's collective judgment of whether it is moral. It is often given as an alternative to legal liberalism, which holds that laws may only be used to the extent that they promote liberty. [1]
The value-form theorists claimed, that value can only be expressed by money, and that value in a labour economy cannot exist prior to exchange (trade). In that case, the purpose of value theory is about (re-)interpreting the social meaning of market phenomena in a Hegelian philosophical way, [27] and not with measuring the magnitudes of value.
In the same work, Copernicus also formulated an early version of the quantity theory of money, [2] or the relation between a stock of money, its velocity, its price level, and the output of an economy. Like many later classical economists of the 18th and 19th centuries, he focused on the connection between increased money supply and inflation. [6]