(OPE-L) on money, capital, and the state

[glevy@xxxxxxxxx]

Hi Costas:

 On the other hand, the approach of seeking to derive money as claim to
> wealth, which you associate with Schumpeter, is problematic. The reason
> is that it makes money's emergence essentially exogenous to the process
> of exchange. The usual reference for this approach is Knapp and there
> are many other Austrians and Germans, including Weber. They typically
> rely on forces outside the market (the state, law, etc) to determine the
> claim to wealth represented by money. I prefer endogenous explanations,
> when available.

The state is " exogeneous" to what?  Surely not capitalism.

In solidarity, Jerry