Saturday, October 4, 2014

Money, The Unauthorized Biography. By Felix Martin.

Documents the history of money, especially the tension between the two concepts of money. One as an absolute standard of value. The other as a transferable system of credits.

Money as an absolute standard of value (Such as the gold standard) has always been favored by less-government types because it can be maintained without a powerful government. It's only when money is treated as a system of transferable credit, managed by a government, that the economy can stabilize.

The book also has a strong opinion on how banks should be reformed to deal with the great recession. It calls for a separation between payment-transfer banking and investment banking. There were other recommendations, all good I'm sure, but they have fallen out of my mind.

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