Publication details

Not all money is created equal: The concept of a hierarchy of money

Investor logo
Authors

SUCHÁNEK Marián

Year of publication 2024
Type Article in Periodical
Magazine / Source REVIEW OF ECONOMIC PERSPECTIVES
MU Faculty or unit

Faculty of Economics and Administration

Citation
web https://sciendo.com/article/10.2478/revecp-2024-0004
Doi http://dx.doi.org/10.2478/revecp-2024-0004
Keywords Hierarchy of money; Modern money theory; Money view; Monetary sovereignty; Nature of money
Description The concept of a hierarchy of money or the idea that a number of instruments constitute money and that they are hierarchically related to one another is relatively recent and yet quite widespread. However, it is argued, that its comprehension differs. The most elaborated cases in which differing treatments of the term can be found are Modern Money Theory (MMT) and the Money View. At first sight, the MMT’s model of money hierarchy focuses on a hierarchy within a specific unit of account whereas the Money View perceives hierarchy not only within an individual unit of account but also across various units of accounts. But, as is shown, differences are more fundamental. It is argued that different comprehension can be explained by the different distinctions between money and credit and concept of monetary sovereignty within each approach rather than the concept of hierarchy itself. The concept of hierarchy acts, in fact, as a framework that ensures consistency in the use of different money instruments on those level.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.

More info