Why Money Matters: Debating the Social Construction of Monetary Value and the Concept of Money as Debt

Abstract

This article evaluates the major gaps in the state of the art regarding the socioeconomic literature on money. It examines current debates on the ontology of money and the concept of money as debt. It asserts the idea that money is essentially the result of a human cognitive property by means of which we establish a general measure of value that can be applied to valuing things, goods, or services. Money is the institutionlization of an abstract measure of value, not the object being measured, nor a tool for valuation. This article argues that understanding the social nature of money as a social institution is fundamental to comprehending the role it plays in organizing the economy and social life.