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September 01, 2009


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Thomas Barker

I'd disagree that Zopa creates money - but perhaps I just have a narrower conception of it.

Banks are unique in having their short-term liabilities circulate as a widely accepted currency. You can't own a Zopa loan, and then use it to buy stuff.

As a claim over future cashflows, it's certainly a creation of financial capital though.

Bruce Davis

Thanks for the comment, Thomas. I agree that Zopa doesn't create money as classical economics would describe it, however as you say it is only one convention and definition of money creation. Simmel saw that 'neutrality' and ability to transfer to different fields of value being an ideal it was building towards rather than a statement of its essential reality.

Now that we (i.e. politicians) are starting to ask what are the socially useful usages and forms of money (although not in a very mature way : ) ) then we can also ask whether it is better for money to be fluid and constantly moving or more solid and fixed?

Thomas Barker

That's fair.

It's certainly money in the sense that your behaviour will change by knowing that you will get things later by owning it. (Independantly of your own efforts, which I suppose would distinguish it from a business asset.)

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