¹ See C. Rogers, Money, Interest and Capital: A Study in the Foundations of Monetary Theory (1989).

² G.F. Knapp, The State Theory of Money (1924), 1. Cited in Kreitner, R., ‘Legal History of Money’, (2012) 8 The Annual Review of Law and Social Science 415, at 416CrossRefGoogle Scholar. On endogenous money and the MMT view see L.R. Wray, ‘Modern Money Theory: The Basics’, New Economic Perspectives, 24 June 2014, available at neweconomicperspectives.org/2014/06/modern-money-theory-basics.html (accessed 19 January 2018).

³ See also Kennedy, D., ‘The Stakes of Law, or Hale and Foucault!’, (1991) 25 Legal Studies Forum 327Google Scholar; Moudud, J.K., ‘Looking into the Black Box: Policy as a Contested Process’, in Lee, F.S. and Cronin, B. (eds.), Handbook of Research Methods and Applications in Heterodox Economics (2016), 400Google Scholar.

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⁷ Ibid., at 36.

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¹² C. Desan, ‘The Monetary Structure of Economic Activity’, (2016) unpublished paper, Harvard Law School.

¹³ See Desan, supra note 10, at 28.

¹⁴ Dollarization is usually a consequence of macroeconomic and/or political instability. See N. Duma, ‘Dollarization in Cambodia: Causes and Policy Implications’, (2011) IMF Working Paper WP/11/49; M. Mecagni et al., ‘Dollarization in sub-Saharan Africa: Experience and Lessons’, (2015) IMF. This issue is of relevance for countries notably in sub-Saharan Africa, but also in Latin America, and parts of South and East Asia.

¹⁵ L. Taylor, Varieties of Stabilization Experience: Towards Sensible Macroeconomics in the Third World (1988); L. Taylor, Reconstructing Macroeconomics (2004).

¹⁶ Herrero and Casey, ‘In Venezuela, Cooking With Firewood as Currency Collapses’, The New York Times, 2 September 2017, available at www.nytimes.com/2017/09/02/world/americas/venezuela-nicholas-maduro-inflation-economic-collapse.html (accessed 19 January 2018); C. Obianwu, ‘Why the Central Bank is Legally Wrong on Dollarisation’, 2015, available at www.templars-law.com/wp-content/uploads/2015/08/Why-the-Central-Bank-is-Legally-Wrong-on-Dollarisation.pdf (accessed 19 January 2018); and for Salvatore, Mexico D., Dean, J.W., and Willett, T. D. (eds.), The Dollarization Debate (2003)CrossRefGoogle Scholar.

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²¹ See Desan, supra note 10, and C. Desan, Making Money: Coin, Currency, and Coming of Capitalism (2014).

²² The stakeholder model discussed here is adopted from Desan (2014), supra note 21. Desan coined the term ‘stakeholder’.

²³ See below for the discussion of money that is specie-backed.

²⁴ See Desan (2014), supra note 21, at 64 and 47.

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³² J.M. Keynes, The General Theory of Employment, Interest, and Money (1953), Ch. 12.

³³ Ibid., at 154.

³⁴ Ibid., at 162.

³⁵ Kalecki, M., ‘Political Aspects of Full Employment’, (1943) 14 Political Quarterly 322CrossRefGoogle Scholar.

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⁴¹ This term was coined by Schumpeter. See I.M. Martin, A.K. Mehrotra, and M. Prasad, The New Fiscal Sociology: Taxation in Comparative and Historical Perspective (2009).

⁴² Kaldor, N., ‘Will Underdeveloped Countries Learn to Tax?’, (1963) 41 (2) Foreign Affairs 410, at 418 (emphasis added)CrossRefGoogle Scholar.

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⁴⁶ Hale, R.L., ‘Bargaining, Duress, and Economic Liberty’, (1943) 43 Columbia Law Review 603, at 628CrossRefGoogle Scholar.

⁴⁷ ‘[T]he reform of capitalist economy by socialist parties is difficult even when they are determined not to interfere with the property system. For the mere possibility that they might decide to do so undermines that type of confidence which in liberal economy is vital, namely, absolute confidence in the continuity of the titles to property’. From K. Polanyi, The Great Transformation (1944), at 234.

⁴⁸ See Kalecki, supra note 35, at 3.

⁴⁹ See Keynes, supra note 32; T. Veblen, The Theory of Business Enterprise (1978); W.C. Peterson and P.S. Estenson, Income, Employment, Economic Growth (1996).

⁵⁰ Equal to the hourly wage rate per worker + materials (including depreciation) costs per worker divided by labour productivity.

⁵¹ For example, do strong tort laws prevent firms from flooding the market with a large number of low-quality and potentially harmful products? How do labour laws affect distributional struggles and thus unit labour costs? Are there import tariffs in place that expand the domestic market by restraining the sales of foreign firms? Do industrial policies promote export markets? Is the country embedded in a free trade zone, which subjects domestic firms to more efficient foreign firms and thus shrinks the former's market shares?

⁵² See Kennedy supra note 3. See, e.g., various chapters in R. Asher and R. Edsworth, Autowork (1995) regarding an application of Kennedy's argument to the UAW and the auto industry.

⁵³ This was exactly the experience of the Mitterrand government in the early 1980s. See J. Birch, ‘The Many Lives of François Mitterrand’, Jacobin, 19 August 2015, available at www.jacobinmag.com/2015/08/francois-mitterrand-socialist-party-common-program-communist-pcf-1981-elections-austerity/ (accessed 19 January 2018).

⁵⁴ For references to the substantial international literature on business opposition to social democratic policies see Moudud, supra note 3.

⁵⁵ The question of foreign debt's excessiveness clearly does not affect the US since most of its debt is in its own currency. See B. Eichengreen, Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System (2011) on this issue. Thus, the discussion on foreign debt in the current article pertains to all other countries, especially those in the Global South. For all these countries, trade deficits involve a loss of foreign exchange reserves and thus increased need for foreign borrowing. Finally, there is an established post-Keynesian literature which argues that a rising budget deficit will have a negative effect on the trade balance, i.e., trade balances constrain how high budget deficits can increase. See Moreno-Brid, J.C. and Pérez, E., ‘Balance-of-Payments-Constrained Growth in Central America: 1950-96’, (1999) 22 Journal of Post Keynesian Economics 131CrossRefGoogle Scholar; W. Godley and M. Lavoie, Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth (2007), Ch. 6.

⁵⁶ Export promotion and protectionist policies would raise the foreign demand for domestically produced goods relative to the domestic demand for foreign goods. Other things being equal, this situation would appreciate the value of the domestic currency. Finally, note that capital inflows would also tend to appreciate the currency.

⁵⁷ See, e.g., H. Chang, Kicking Away the Ladder: Development Strategy in Historical Perspective (2002); A. Amsden, Asia's Next Giant (1989).

⁵⁸ R. Wade, Governing the Market (1990); P. Evans, Embedded Autonomy: States and Industrial Transformation (1995); Trubek, D.M. et al. (eds.), Law and the New Developmental State: The Brazilian Experience in Latin American Context (2013)CrossRefGoogle Scholar.

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⁶⁹ See Desan (2014) supra note 21, Ch. 1.

⁷⁰ Ibid., at 64.

⁷¹ Ibid.

⁷² Ibid., see North and Weingast, infra note 116, at 59. See also Desan's discussion (ibid., at 127) regarding people's occasional desire to convert the domestic currency into bullion so as to send it abroad in order to be reconverted into a foreign currency. As she points out, sometimes this was done for arbitrage purposes.

⁷³ See Chang, supra note 57.

⁷⁴ See Desan (2014), supra note 21, at 96.

⁷⁵ Ibid., at 271 and Ch. 3.

⁷⁶ Desan, C., ‘Beyond Commodification: Contract and the Credit-Based World of Modern Capitalism’, in Hamilton, D.W. and Brophy, A.L. (eds.) Transformations in American Legal History: Laws, Ideology, and Markets. Essays in Honor of Morton J. Horwitz (2010), Vol. II, 111, at 113Google Scholar. Quoting the Supreme Court (Norman v. Baltimore & O.R. Co., 294 U.S. 240, 304 (1935)), Desan observes at 114 that ‘“the authority to impose requirements of uniformity and parity” is “an essential feature” of controlling a currency in “accord with the usage of sovereigns”’.

⁷⁷ See Desan (2014), supra note 21, at 153 and 165.

⁷⁸ Ibid., at 218 and 219.

⁷⁹ Ibid., at 243.

⁸⁰ Ibid., at 255

⁸¹ Ibid., at 261.

⁸² Ibid., at 264.

⁸³ Ibid., at 281 and Ch. 7 more generally.

See G. Alexander, Commodity and Propriety: Competing Visions of Property in American Legal Thought 1776-1970 (1997) for parallel ideological processes occurring in the US with the growing commercialization of society.

⁸⁴ See Desan (2014), supra note 21, at 281.

⁸⁵ Ibid., at 269 and 270.

⁸⁶ Ibid., Ch. 8.

⁸⁷ See Desan, supra note 27; and M. Ricks, The Money Problem: Rethinking Financial Regulation (2016).

⁸⁸ See Desan (2014), supra note 21, at 387.

⁸⁹ ‘Money, when paid into a bank, ceases altogether to be the money of the principal; it is then the money of the banker, who is bound to return an equivalent by paying a similar sum to that deposited with him when he is asked for it. The money paid into the banker's, is money known by the principal to be placed there for the purpose of being under the control of the banker; it is then the banker's money; he is known to deal with it as his own; he makes what profit he can, which profit he retains to himself.’ (Foley v. Hill (1848) 2 HL 28, 38–9; 9 ER 1002, 1006–1007). Cited from Desan (2014), supra note 21, at 393 and 394.

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⁹¹ See Desan (2014), supra note 21, at 368–9. For literature on state-led industrialization see supra notes 57 and 58.

⁹² Ibid., at 369. Officers of the BoE were associated with the Whig Party while the National Land Bank's promoters and supporters were Tories (ibid., at 368).

⁹³ Ibid., at 369.

⁹⁴ Ibid., at 329

⁹⁵ Ibid., at 370.

⁹⁶ Murphy, A.L., ‘Dealing with the Threat of Reform: The Bank of England in the 1780s’, in Brown, A.T., Burn, A., and Doherty, R. (eds.), Crisis in Economic and Social History: A Comparative Perspective (2015), 283, at 284Google Scholar; E.M. Kim, Business Business, Strong State: Collusion and Conflict in South Korean Development, 1960-1990, (1997).

⁹⁷ M. J. Horwitz, The Transformation of American Law 1780-1860, (1977), at xiv.

⁹⁸ Ibid., at xvi.

⁹⁹ Ibid., at xiv.

¹⁰⁰ E.M. Wood, Democracy Against Capitalism: Renewing Historical Materialism (2016).

¹⁰¹ See Gordon, supra note 5.

¹⁰² Johnson, J., ‘The Money = Blood Metaphor, 1300 – 1800’, (1966) 21 The Journal of Finance 119CrossRefGoogle Scholar.

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¹⁰⁴ L.R. Wray, Money and Credit in Capitalist Economies (1990). See also David Ricardo's chapter ‘On Foreign Trade’ in his On the Principles of Political Economy and Taxation (1817), in which he likened foreign trade to barter, with money finding its own level, available at www.marxists.org/reference/subject/economics/ricardo/tax/ch07.htm (accessed 19 January 2018).

¹⁰⁵ A.M. Shaikh, Capitalism: Competition, Conflict, Crises (2016); M. Smith, Thomas Tooke and the Monetary Thought of Classical Economics (2011); R.F. Harrod, International Economics (1957); Milberg, W., ‘Say's Law in the Open Economy: Keynes's Rejection of the Theory of Comparative Advantage’, in Dow, S. and Hillard, J. (eds.) Keynes, Uncertainty and the Global Economy: Beyond Keynes (2002), Vol. II, at 239Google Scholar.

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¹⁰⁷ See Desan (2014), supra note 21, at 418.

¹⁰⁸ See Desan (2014), supra note 21, ‘Conclusion’.

¹⁰⁹ Ibid., at 418.

¹¹⁰ See supra notes 57 and 58.

¹¹¹ See supra note 60.

¹¹² C. Schonhardt-Bailey, From the Corn Laws to Free Trade: Interests, Ideas, and Institutions in Historical Perspective (2006); P.S. Ho, Rethinking Trade and Commercial Policy Theories: Development Perspectives (2010).

¹¹³ See Desan (2014), supra note 21, at 328.

¹¹⁴ Ibid., at 418.

¹¹⁵ See supra notes 57 and 58.

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¹¹⁸ See Desan (2014), supra note 21.

¹¹⁹ See Chang, supra note 57.

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¹²² See Desan (2014), supra note 21, at 292.

¹²³ Ibid., Ch. 7.

¹²⁴ E.E. Baptist, The Half Has Never Been Told: Slavery and the Making of American Capitalism (2014); S. Beckert, Empire of Cotton: A Global History (2015).

¹²⁵ In each case the correlation coefficients linking the two variables exceed 0.8 and are highly statistically significant.

¹²⁶ ‘Slavery is a legal relationship: It is precisely the slave's bundle of jural rights (or rather lack of them) and duties vis-à-vis others (he can't leave, he can't inherit, he has restricted rights of ownership, he can't insist on his family being together as a unit, etc.) that makes him a slave’. From Gordon, supra note 5, at 103 (emphasis in original).

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¹²⁹ Ibid., at 109.

¹³⁰ See, e.g., D.A. Kysar, Regulating From Nowhere: Environmental Law and the Search for Objectivity (2010), and references cited therein.

¹³¹ E.P. Thompson, The Poverty of Theory and Other Essays (1978), 96 (emphasis in original).

¹³² E.P. Thompson,Whigs and Hunters: The Origin of the Black Act (1975); Brenner, R., ‘Agrarian Class Structure and Economic Development in Pre-industrial Europe’, (1976) 70 Past and Present 30CrossRefGoogle Scholar. See Gordon's (supra note 5) discussion of these authors.

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