10.30 - 10/30/07 International Money: What is it good for?...

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10/30/07 International Money: What is it good for? The Politics of Money -The price of the dollar is the single most important value in the US -money is a veil over the real economy -money is always and everywhere political -why is money so fundamentally political? 1. The government is in the money business -government provides and manages money -stability of government depends on money management -money is a symbol of sovereignty -each state guards production of its own money -secret service is a branch of the treasury 2. Choices about money are inherently conflictual -interest rates -exchange rates -monetary arrangements (currency unions) *all these things promote the idea of winners and losers 3. Unique psychology of money -why does money have value? -the money you have is useful only because other people thing that it has value -the people who manage money often fear small changes -do not want things spiraling out of control -attachment to stabilization of money Why Money Matters: -store of value
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This note was uploaded on 03/05/2008 for the course GOVT 1817 taught by Professor Katzenstein, p during the Fall '05 term at Cornell University (Engineering School).

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10.30 - 10/30/07 International Money: What is it good for?...

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