Reconciling two concepts of money: Karl Marx and Tony Lawson

Abstract

Abstract There are two fundamental theories of the nature of money: the commodity theory and the credit theory. These theories, with their contrasting core emphases on a commodity or on debt, are widely recognised as being wholly incompatible. However, we argue that the core emphases at least are reconcilable in determining a more sustainable way of conceptualising money. We demonstrate, first, the fatal problems of the two conceptions of money, and the necessity of reconciling their contrasting core emphases to address the puzzle of money. Second, we find another theoretical tradition represented by Karl Marx and Tony Lawson that provides methods to achieve the desired reconciliation. Marx applies duality analysis to the nature of money, and Lawson draws on social positioning theory. This paper can aid scholars in better understanding the nature of money.