Close window
 Research Projects at the MPIfG

Working Fictions of Money: The Making of Currency (Dis)Trust

Guadalupe Moreno


 
Money is a crucial social institution in contemporary capitalist economies. However, despite its undeniable importance, there are still significant gaps in our understanding of the nature, making, and workings of contemporary fiat money. Combining political economy and economic sociology approaches, this project studies the socio-political and institutional processes that underpin trust in money. The project addresses three questions: What are the social, political, and institutional processes that lie behind the creation of trust in national currencies? How can the study of monetary crises help us to understand contemporary money? What specific beliefs must be maintained for money to work correctly? Departing from the study of Argentina – a country that has suffered countless monetary crises and has never been able to stabilize its currency for sustained periods – the project seeks to understand the mechanisms through which crises destroy trust in money. It analyzes how currency crashes reveal the fundamental mismatch between contemporary fiat money’s institutional reality and widespread monetary beliefs. The study emphasizes the importance of a successful politics of expectations to ensure monetary governability and foster trust. Project duration: October 2020 to September 2021.
 

 
Close window