Fundamentals of a theory of money: untangling Fine, Lapavitsas and Zelizer

This article criticizes both the 'Marxist' and 'sociological' conceptualizations of money to be found in the recent debate between Fine, Lapavitsas and Zelizer in Economy and Society . They neglect important contributions to the theory of money, especially the 'credit' and 'state' theories of money in the social sciences. These emphasize, as did Keynes, the central theoretical importance of money of account . These approaches were banished from orthodox economics and lost to sociology in the post- Methodenstreit division of intellectual labour in the social sciences. Marxist economics has never properly addressed this monetary analysis. Although neglected, it is not obscure and informs the more widely known post-Keynesian theory of money. This article argues that these heterodox theories of money are essentially sociological in that they involve the conceptualization of money as abstract value constituted by the social relation of the 'promise to pay'.