Is Money a Public Good?

Why has contemporary political theory been silent on money? The answer Stefan Eich provides in his brilliant book The Currency of Politics begins with John Rawls. Rawls's silence on money and monetary policy is, for Eich, mostly a result of indifference—an indifference that reflected the fact that Rawls took for granted a "confident postwar context" characterized by affluence and a relatively stable international monetary system (181). The real "silent revolution," as Eich calls it (20, 177), comes after Rawls. By the 1980s, the international monetary regime undergoes drastic changes, including the lifting of capital controls and the rise of central bank independence. As Eich insightfully argues, this depoliticization of money was itself a political strategy. By letting consequential economic decisions remain outside the realm of political contestation, states tried to avoid excessive pressures. According to Eich, major political theorists, including Jürgen Habermas and Michael Walzer, fell prey to this neoliberal logic. In part because of the inflationary demands that a democratization of the economy would imply, such thinkers grew skeptical of the possibility of any such democratization. The disappearance of money from political theory was one of the consequences of this more general turning away from economic democracy (197–99).