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Carl Menger and the network theory of money

2003; Taylor & Francis; Volume: 10; Issue: 4 Linguagem: Inglês

10.1080/0967256032000137737

1469-5936

Mikael Stenkula,

Economic Theory and Institutions

Carl Menger has occasionally been cited as a forerunner to the network theory of money. This article analyses Carl Menger's monetary theory and evaluates whether he was aware of the network characteristic of money from a retrospective angle. The result is mixed. Menger is one of the first to discuss the marketability and liquidity of an asset, which in German he denotes Absatzfähigkeit. This concept has a strong connection with the network aspect of a commodity. However, he is not distinct enough in his analysis and there is a lack of depth in his understanding.