Money as "legally enforced debt"
On the assumed dichotomy of functional and instructive theories of monetary practice
The concept of money is usually defined in functional terms. [1]
A common wording of a textbook definition of money ran as follows:
“Economists define money [...] as anything that is generally accepted in payment for goods or services or in the repayment of debts.” [2]
This definition however obscures the concrete form in the legal sense. The question arises thus as to whether the economic functionality aspect dominates the legal form of money. The former circumstance would tend towards a functional view of the law, which has to adapt to economic rationality. [3] The latter means a fixation on the state as a reference point, according to which its regulating power would lead to significant consequences for the handling of money. [4] A more mediating view argues that money developed with a certain amount of legal support in order to make the financing goals of states more easily achievable. [5]
Sources:
[1] Paul, A. T. (2017) Theorie des Geldes zur Einführung, Hamburg: Junius, p. 14.
[2] Mishkin, F. S. (2013) The Economics of Money, Banking, and Financial Markets, 10th ed., Essex: Pearson, p. 94.
[3] Compare Menger, x. (xxxx) On the Origins of Money, xxx: xxx, p. 255.
[4] Knapp, x. (xxxx) Staatliche Theorie des Geldes, xxx: xxx, p. 17f.
[5] Desan, x. (xxxx) Making Money: Coin, Currency, and the Coming of Capitalism, xxx: xxx, p. 14f.
[6] …