Credit in Money and its Structure with Respect to Money Use

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  • 貨幣における信用とその構造
  • カヘイ ニ オケル シンヨウ ト ソノ コウゾウ

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Faith-based money circulates primarily on credit. Even when dealing with commodity money, it is rare for it to be accepted without some underlying credibility. In the context of money, “credit” or “belief” does not imply that users of money have confidence in the issuer or in the maintenance of a given monetary system. Rather, participants accept money because they believe other people will accept it. Money is never accepted solely because of its legal tender status. We trust the system where money is circulated as a mechanism, not as a deceptive trick. Just as we do not act based on stocks’ intrinsic value, but rather by predicting others’ future actions, we behave similarly with money. This is akin to Keynes’ beauty contest analogy, where participants make decisions based on their expectations of others’ choices. To be more specific, itis more like the card game of Old Maid, than a beauty contest. People are not particularly interested in a given card, but rather in other participants receiving a given card (for themselves). Participants in Keynes’ contest are active, while participants in a game of Old Maid are passive.

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