Two Models of the Relationship Between Money and Sovereignty: An Interpretation Based on John R. Commons’s Institutionalism

Political Government and Economic Government in J.R. Commons’ Institutional Economics

“…According to their original dichotomy of "political sovereignty" and "monetary sovereignty," Dutraive and Théret (2017) developed "two models" to describe the evolution of monetary institutions based on Commons' works. The two models differ in the relationship between political and monetary sovereignties.…”

“…This study reveals the evolutionary nature of monetary institutions found in Commons' works using the groundwork developed by Dutraive and Théret (2017), while at the same time, offers its critique. I revise their work from the following three aspects.…”

“…I reinterpret the evolution of money as an institution based on Commons' own terms and descriptions. Dutraive and Théret (2017) equated "political sovereignty" to Commons' term "sovereignty." However, is there a term in Commons' works compatible with their term, "monetary sovereignty?"…”

“…The term I contrast with "economic government" is "political government" (Commons 1929(Commons , 1934b. While Dutraive and Théret (2017) derived their comparison between political and monetary sovereignties from Commons (1934b), I base my comparison directly on Commons' (1934b) literature.…”

“…I revise their work from the following three aspects. First, Dutraive and Théret (2017) used their original terms "political and monetary sovereignties," in order to develop the two relationships described above from Commons' works. I reinterpret the evolution of money as an institution based on Commons' own terms and descriptions.…”