- 04 Dicembre 2018
- by Blogger
Gold initially becomes the favored money metal because of the decisions of individuals. The division of labor is not the product of State sovereignty over money. It is the product of the rule of law. Government officials then see that gold coins circulate. They intervene, mandating that all coins be stamped with the State’s seal. The State comes in the name of its own sovereignty to bask in the light of a free market institution: the gold standard. It is like a species of bird that lays its eggs in another species’ nests. It has to fool the other birds. So does the State have to fool the public. “Money is an attribute of the state’s sovereignty!” Not initially, it isn’t.