Abstract
This chapter explains the study results of factors related to the state theory. The theory according to which money is the creation of the State is founded on the general nominalist conception under which money has no intrinsic value but is merely a claim on goods, and it circulates because it is generally acceptable as a medium of exchange. Knapp's State theory of money succeeded in overshadowing, however, the other versions of the nominalist conception. It was endorsed by many leading monetary theorists in Germany and abroad. The most important aspect of Knapp's theory from the point of view of its bearing on primitive money is that action by the state is capable of raising the value of a currency by increasing its acceptability. The extent to which the state theory is capable of explaining the value of primitive money, as distinct from its validity, depends on the relative importance of political and nonpolitical payments in a given community.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
