Ontology of money: Simmel, Knapp and Keynes

Debates on the origins and functions of money, one of the most important social institutions, continue to this day. This debate does not have only academic significance, but also its implications have far-reaching influence on the benefits of all economic agents. We argue that mainstream theory of money is incorrect and that origins of money lie in state's imposition of taxes. Primary function of money is to be measure of value. Also, money is not neutral, i.e. monetary system has independent and powerful influence on real sector. Thus, it is possible that in periods of high business uncertainty consumers will defer consumption decisions and, in that way deepen financial crisis.