Colin Drumm on Misconceptions about Medieval Society and Modern Money
May 11, 2023
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Colin Drumm, with a Ph.D. in the History of Consciousness, discusses misconceptions about medieval society and modern money on Varn Vlog. Topics include the evolution of Modern Monetary Theory, critiques of MMT, historical context of money, medieval barons and political power, Hobbesian philosophy, Marx's theories on labor and capitalism, challenging canonical figures, nuances in economic class analysis, abstract nature of history, evaluation of Graybird's work, role of kinship in politics, uncomfortable historical connections, and academic critiques.
State manipulation of coin value stems from internal fiscal concerns and market alignment.
Medieval monetary institutions managed foreign exchange rates to ease fund flow.
Coin debasement in history reflects defensive measures amid economic pressures.
Historic monetary policy aimed to balance domestic and foreign valuation demands.
Shifts in power dynamics influenced monetary policies through different dynasties.
Deep dives
Understanding the Intersection of Theory and Currency Manipulation
The King doesn't want to debase the coinage willy-nilly because it confuses monetary value and stabilizes the fiscal position internally. Typically, states modify money value to match the foreign exchange market pricing to control arbitrage. Money market dynamics influence policy interventions in money value, steering states to alter coinage for alignment with market trends.
Exploring Historical Monetary Policy Drivers
Monetary institutions in medieval times managed foreign exchange quotes within a specific spread to facilitate the flow of funds. Debasing and re-coinage of currency were often politically motivated responses to maintain fiscal equilibrium and prevent a bullion drain abroad. Understanding these actions required alignment with market valuations of the unit of account.
Evaluating State Motivations in Currency Debasement
State coinage debasements were not solely aggressive but often defensive measures against market pressures. The intricacies of coin devaluation were intricately tied to balancing domestic and foreign demands for the unit of account's value, illustrating the political and economic implications of state currency manipulations.
Key Insights Into State-Foreign Exchange Dynamics
Historical monetary policy decisions, such as debasing coinage, were driven by efforts to regulate the value of the unit of account in line with foreign exchange markets. The delicate balance between internal and external monetary demands influenced state interventions to maintain financial stability and prevent capital flight.
Impact of Competing Dynasties on Monetary Policy
During the English 14th and 15th centuries, different dynasties like the Lancastrians and Yorkists influenced monetary policies as they rose to power. The podcast delves into how shifts in power led to changes in monetary systems, with each dynasty favoring different policy stances. This historical exploration reveals how monetary policy was negotiated through violent power struggles that challenged the state's legitimacy, showing that altering monetary policy often required the rise of a new dynasty.
Marx's Perspective on Monetary Politics and Property
The episode delves into Marx's views on monetary politics and property, highlighting his critique of socialism focusing on monetary interventions. Marx aimed to demonstrate that monetary policies alone could not address systemic issues, emphasizing the broader socio-economic structures governing property and labor relations. By challenging the notion that monetary instability is solely financial, Marx sought to reveal underlying societal contradictions inherent in property relations and their impact on monetary theories.
Evolution of Labor Value Concept and Influence of Hobbes
The podcast unveils the historical development of the labor value concept, tracing its origins to competitive markets and inflation theories. Through the 18th century and crystallizing in works of Smith, Ricardo, and Marx, the concept evolved, emphasizing the value of labor in determining competitive prices. Interestingly, the discussion touches upon Thomas Hobbes' influence on the labor value concept, highlighting two key ideas crucial for understanding competitive pricing and labor valuation. This historical insight sheds light on the complexities and ambiguities surrounding the labor value theory and its enduring impact.
Impact of Inflation on Different Socioeconomic Classes
The discussion delves into how inflationary measures often exclude essential aspects like food and housing costs, impacting different socioeconomic classes. Food inflation, high at present, disproportionately affects the poor, while housing costs, bracketed out, have a broader impact, especially on low-income groups. The conversation highlights the exclusion of lower-income individuals from discussions around inflation, emphasizing a need for more granular economic concepts to address varied class vulnerabilities.
Challenges of Applying Single Deflator Indices to Measure Real Returns
Another key point centers on the limitations of using single deflator indices to assess real returns, citing the example of the Consumer Price Index (CPI) in financial investments. The conversation questions the validity of using a general index like CPI, highlighting how inflation rates are relative to individual consumption patterns. By critiquing the oversimplification of inflation analysis, the discussion underscores the need for nuanced economic perspectives grounded in diverse consumption behaviors.
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Colin Drumm has a Ph.D. History of Consciousness. He writes and teaches on monetary history, medieval political economy, and the relationship between political economy and philosophy. He is an organizer of the Mimbres School. We discuss misconceptions of the history of money and its effects on contemporary understandings of money and politics.
Crew: Host: C. Derick Varn Audio Producer: Paul Channel Strip ( @aufhebenkultur ) Intro and Outro Music by Bitter Lake. Intro Video Design: Jason Myles
