The Contributions of Knapp and Innes to the Chartalist Theory of Money
Abstract
Abstract The relationship between money and credit is analyzed differently by Orthodoxy, which, in general, analyzes it using the commodity money approach; and Heterodoxy, which, at large, adopts the Chartalist approach. Thus, orthodoxy postulates a monetary theory of credit; and heterodoxy, a credit theory of money, where money is, by nature, credit. The State uses its sovereignty to define what will (or will not) be accepted as money in the payments of transactions due to itself. And Knapp’s contribution in structuring a theory of state money meets Innes’s credit theory of money, supplying an alternative theory of money.
Fields of Study & Subjects
Economic Theory and Policy
Economic Theory and Institutions
Historical Economic and Legal Thought
Publication details
- Journal / source
- Brazilian Journal of Political Economy
- Volume
- 46
- Issue
- 1
- Publication date
- 1 January 2026
- Language
- EN