Property Ownership and Money: A New Synthesis

I expand on the ownership-based approach to money and argue that core elements of conflicting commodity, state, credit, and ownership-based money views can be integrated into a theory of money through a framework based on claims to property and the associated categories of settlement assets and money of account. This new synthesis reveals that, in all major ownership-based societies, individuals have entered into economic dealings by issuing enforceable claims to their property on the basis of ownership and security. Claims to property historically emerged in two forms: (i) debtor-issued claims, including negotiable instruments and book accounts; and (ii) creator-issued claims, such as bank notes and bank deposits. Commodities, coins, and state instruments attain their monetary roles because they allow private claims to be finally settled. Eight archetypes of monetary arrangements, reflecting the historical evolution of monetary systems, are identified and compared. I demonstrate the role of property assets in money creation, the proper significance of money of account, and delineate the role of state-issued payment instruments.