The Monetary Nexus

Abstract

Recent debate on monetary theory has probed increasingly into its fundamental conceptualisations, and some far-reaching proposals for reform have emerged. This study is an attempt to contribute towards such a reform. It begins with an appraisal of the theory in order to evaluate its status as an empirical theory, and finds that the ideas of money as a nexus between producer and user, of economic processes as occurring through time, and of the absence of general equilibrating tendencies, need substantial reformulation if the processes of a modern pecuniary economy are to be adequately represented. The study devotes its major effort to structuring these ideas into a form capable of sustaining the required theoretical development while maintaining contact with the world of experience.