The Love of Money: On Menger and Keynes

Abstract

For Keynes, the history of money begins when the function of measure of value arises for the first time. By contrast, Menger believes that the origin of money is determined by the appearance of the function of medium of exchange. Despite this substantial difference in interpretation, Menger and Keynes agree in terms of criticizing the function of store of value, even though this third function is useful under certain conditions. This paper argues that this agreement, at the level of monetary theory, is linked to a common ethical evaluation: Both stigmatise the love of money exactly because this desire involves a false absolutisation of money as a store of wealth. The paper will be structured in two main parts: I. Monetary Theory. The first part briefly sketches the two competing models of the explanation of the origin of money and its value. II. Ethics. In the second part, the focus will be the common rejection of the love of money.