Money References

This page collects important references related to monetary theory, especially alternatives to conventional view. SEE also Debt, Money Seignorage for collection of relevant and important papers on this topic.

• 1. Mnetary Pardoxes of Baby Sitting Cooperatives: This paper shows that even simple money models have MULTIPLE EQUILIBRIA. This means that the value of money depends on coordination of expectations among all agents -- money has value because everyone believes it does

  2. Objectives of Financial Institutions: Western and Islamic: This shows how the objectives of financial institutions are in conflict with Islamic ideas, and how we must change the nature of financial institutions to bring them in line with Islamic Ideas.

  3. Building Genuine Islamic Financial Institutions: This shows how radically different Islamic Institutions would be from current Western ones.

  4. On the Nature of Modern Money: This shows how modern money consists of Central Bank created money and Private Bank created credit. These two are very different and have very different effects. Furthermore, contrary to textbook theories, Central Bank CANNOT control the money supply.

  5. An Islamic Version of the Iceland Plan: Shows how the fractional reserve banking system allowing private banks to create money is extremely harmful, and proposes an alternative system for central banking based on 100% reserve banking

  6. Urdu Paper: Creation of Money and Islamic Banking [revised and updated version of next listed URDU paper -- just read this one]

  7. URDU paper on nature of maney and banking -- meant for Ulema..[OLD version, not be read, being kept for archival/historical purposes]

  8. 12 Year Old Child Reveals Best Kept Secret -- How Canadian Banks Create Money and Rob the Public

  9. Interest and the Modern Economy -- old paper, but contains important information about the evils of interest -- co-authored with Dr. Arshad Zaman

Here is a collection of relevant books.

• 1. Handbook of Alternative Monetary Theories -- Collection of Essays regarding heterodox monetary theories.

  2. Casualities of Credit: The English Financial Revolution 1620- 1720 by Carl Wennerlind -- very important history of emergence of money.

1. Debt: The First 5000 Years by David Graeber.

2. Wall Street and the Politics of Finance -- with many reference and Micheal Hudson

   1. House of Debt: by Atif Mian and Amir Sufi -- or search for title on Library Genesis; see also my Review & Summary

Interesting Articles are listed here

• 1. Schumacher: Multilateral Clearing. A way to trade without having exchange rates between different currencies.

  2. Bell & Vos: The Happy Story Told by SME Capital Structure: Firms try to maximize happiness instead of wealth.