The School of Salamanca on Value of Money: A Reassessment

Abstract

This study endeavors to investigate the theory of the value of money from the vantage point of late scholastic scholars, with a specific focus on the Salamanca School and the two prevailing monetary doctrines: Objectivism (Metallism) and Subjectivism (Chartalism). Our investigation employs the classical works of late scholastic thinkers from the 15th to the 17th centuries to illuminate the perspectives held by the Salamanca School concerning monetary value. The findings affirm that the twofold theory of money value proposed by late scholastic thinkers constitutes a nuanced iteration of the multidimensional approach to money. This comprehensive framework encompasses various facets of value, such as the final, actual, formal, and material dimensions. Moreover, the conspicuous emphasis placed by late scholastic thinkers on the subjective aspects of money value imparts a multifaceted character to their theory, demonstrating striking parallels with modern subjective doctrine.