John Weeks (SOAS) The theory and empirical credibility of commodity money

Monetary Theory of Value peeps might be interested in Weeks paper which can be downloaded over at the CSE Trans-Pennine Working Group. Here is the abstract:


The recent instability in financial markets demonstrated the inadequacy of the mainstream treatment of money and the underlying production base. This has stimulated interest in the possible role of a money commodity. I demonstrate that the fundamental function of monetary theory, an explanation of the general level of prices, is provided through only two analytical mechanisms, quantity-based valueless money or a money commodity. I show that the quantity-based explanation is unsound by its own logic. I then present the theoretical argument for commodity-based money, which is analytically consistent. Theoretical superiority of commodity-based monetary theory has little practical impact because the commodity money hypothesis is considered empirically absurd. A final section demonstrates prima facie credibility of a link between gold and aggregate prices in the United States since the end of World War II. This credibility might motivate Marxists and other critics of mainstream economics to treat seriously commodity-based monetary theory.

About HR

Deep in the adjunct crackhole.
This entry was posted in Marx, monetarytheoryofvalue. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s