The Human Action Podcast Menger vs. MMT on the Origins of Money
Apr 5, 2025
Jonathan Newman, a researcher focused on the use of silver as money in ancient Mesopotamia, offers fascinating insights into the origins of currency. He critiques Modern Monetary Theory (MMT) using archaeological evidence that supports Menger's theories. Newman highlights the historical significance of silver beyond barter, arguing that money emerged from market interactions rather than government intervention. He also explores how ancient clay tablets challenge MMT claims, spotlighting the evolution of monetary value and the essential qualities that made silver a trusted medium of exchange.
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Austrian School's Strength
Austrian economics is uniquely equipped to critique Modern Monetary Theory (MMT) due to its historical understanding of money and public finance. This allows for effective counterarguments against MMT's claims.
Nature of Money
Money arises from indirect exchange and is influenced by its non-monetary uses. The characteristics of money develop through market processes, not solely by state designation.
Historical Consensus
Historians and archaeologists largely agree that silver was used as money in ancient Mesopotamia. This consensus refutes the MMT narrative that early economies operated solely on bureaucratic records.
