THE NEW MONETARY-ECONOMICS AND THE THEORY OF MONEY

A critical analysis of the main tenets of the New Monetary Economics ( NME) is carried out from the viewpoint of received monetary theory. It is shown that the essential properties of a monetary economy are inde pendent of the tangible character of the means of payment and, in part icular, that these properties establish a relationship between the med ium of exchange and the unit of account (section 2). Dwelling upon the se results, the NME proposition, according to which money is a product of regulation, is found to be untenable (section 3).