Money, State, Hegemony: A Political Ontology of Money

Abstract

The paper develops a political understanding of the money-form, its relation to value, to society, and to the state. It argues that the value of assets is based on societal relations. These value relations are expressed in a general measure of value – money. Money serves as the equivalent for all asset values. This general equivalent is conceptualized as a master signifier. Based on Laclau's political theory and theories of International Political Economy, the paper argues that it is the master signifier, which not only defines the assets’ value relations, but also constitutes the assets by assigning value. It follows that the value of an asset can only be determined when it can be expressed in money, and that asset values can only be made comparable when they can be related to this general money-form. Furthermore, the transition from a specific object or credit to the money-form is theorized as a political process. Money ultimately represents a specific political relationship resulting from hegemonic struggles. To conceptualize money as a master signifier makes it possible to understand money not as a neutral measure of abstract value but as a general measure of value relations resulting from political processes and social struggles.