Looking at the development of a country’s international specialization through the lens of money

Abstract

The review acquaints the reader with a book by M.A.Portnoy published in 2017 that offers a new approach to the analysis of money as an economic phenomenon. The reviewed monograph tracks the evolution of money from “material trade-based” to “symbolic credit-based” and links the progress of the financial system with changes in the functions of money. Distinction between “patronage” and “market” credit made in the book sheds new light on the ongoing debate on the optimal financial structure for the economy. The concept of stages of a country’s integration into the world economy linking it to the development of money and monetary flows, measured by the country’s balance of payments, is of particular importance for experts in international economics. The book is recommended for practitioners, researchers, economics educators, students, postgraduates, and the general public.