Notes
1 Cohen, Benjamin J. The Geography of Money. Cornell University Press, Ithaca: 1998.2 Laws that Govern Currencies include: Macroeconomic and Microeconomic fundamentals such as a balance of payments, growth in the real economy signaled by job creation, sustainable external debt, etc. Most notable is that of "The Unholy Trinity" which states that a nation may have only 2 of three desired outcomes: 1) A fixed exchange rate, 2) Independent monetary policy, and 3) Free capital flows. Liu has argued that the Dollar has been able to enjoy all three because of its hegemonic status. Liu, Henry C.K. "China vs the almighty dollar" www.asiatimes.com
3 Dugger, William M. "Underground Economics: A Decade of Institutionalist Dissent". Studies in Institutionalist Economics. ISE. M.E.Sharpe, New York: 1992.
4 Chang, Ha-Joon. "Breaking the mould: an institutionalist political economy alternative to the neo-liberal theory of the market and the state". Cambridge Journal of Economics, 2002 26, 539-559.
5 "It is a system of power that extends to the rules and laws that govern specific markets, and power that extends to the benefits bestowed and the burdens imposed by specific markets . The exercise of power, through private means or through public ones, shapes and channels the economic process to the benefit of some and detriment of others. The economic process is not a natural one, shaped by forces beyond human discretion. Instead the economic process is an artificial one, shaped by human action through the exercise of power. Natural law does not shape the economic process; human law shapes the economic process. . . the laws of economics are artificial. They are shaped by the very objects on which they are designed to operate." (Dugger, p.xxii).
6 Gill, Stephen. American Hegemony and the Trilateral Commission. Cambridge University Press, New York: 1990. P.118.
7 Cox. Robert. Approaches to World Order. Cambridge University Press, University of Cambridge 1996.
8 Greco, Thomas H. Jr. Money: Understanding and creating alternatives to legal tender" Chelsea Green Publishing, VT: 2001. (p.25).
9 Soddy, Frederick. "Wealth, Virtual Wealth and Debt: A Solution to the Economic Paradox". George Allen & Unwin Ltd. London: 1926.
10 Ruskin, John. Unto this Last: Essays in Political Economy.
11 Aristotle. The Politics. Book I
12 Aristotle. The Politics. Book I
13 Friedman, Milton. Money Mischief.
14 Strange, Susan. States and Markets. 2nd Ed. London: Pinter Press, 1994
15 To define it: For an exchange to take place in a barter system, person A, who is in possession m units of good 1 wants n units of good 2. For an exchange to take place, person B must be willing to trade her n units of good 2 for person A's m units of good 1. Each must want precisely what the other is willing to trade in order for a transaction to occur.
16 Cohen, P.29.
17 Transactions costs include: search costs: the cost of seeking out investment opportunities on the creditor's part, and the cost of seeking out funds on the debtor's part. Humans have the capacity to self-organize into marketplaces, or some central location, in order to conduct exchanges. Banks serve the role of a 'marketplace'.
18 Strange, Susan. States and Markets. 2nd Ed. London: Pinter Press, 1994
19 McMurtry, John. Value Wars: The Global Market Versus the Life Economy. Pluto Press, London: 2002. p.129.
20 This is known as the money multiplier. It is the invers of the reserve ration (1/r.r.). The reserve ratio is the amount of deposits that must 'back' the amount of loans issued. This amount is determined largely by averages and probabilities.
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