As a result of the division of intellectual labour that followed the M
ethodenstreit in the social sciences, sociology neglected the analysis
of the social production of money and has concentrated instead on its
social effects or social meanings. Moreover, sociology tacitly endors
ed the flawed conception of money as a 'veil' masking either the 'real
' economy or the 'social relations' of production. Building on the app
roach of the 'historical school' of economics and Keynes and the post-
Keynesians, an alternative theory of money, seen as primarily abstract
money of account, is outlined. With this approach it is possible to d
evelop an explanation for the development of capitalism's distinctive
form of bank and state credit-money. Sociology should recover intellec
tual responsibility for the analysis of monetary phenomena such as inf
lation, interest rate determination, etc., as the outcome of economic
conflict grounded in price-setting struggles. (C) Scandinavian Sociolo
gical Association 1998.