Saturday, September 5, 2020

Money Wisdom #479

What [Money and Government: The Past and Future of Economics by Robert Skidelsky] reveals is an endless war between two broad theoretical perspectives in which the same side always seems to win—for reasons that rarely have anything to do with either theoretical sophistication or greater predictive power. The crux of the argument always seems to turn on the nature of money. Is money best conceived of as a physical commodity, a precious substance used to facilitate exchange, or is it better to see money primarily as a credit, a bookkeeping method or circulating IOU—in any case, a social arrangement? This is an argument that has been going on in some form for thousands of years. What we call “money” is always a mixture of both, and, as I myself noted in Debt (2011), the center of gravity between the two tends to shift back and forth over time. 

(my emphasis)

David Graeber Against Economics (2019) 

A Review of Money and Government: The Past and Future of Economics by Robert Skidelsky

in The New York Review of Books (link)