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Finance and Credit
 

Transition from non-monetary (barter) to money-based method of government, production, and distribution

Vol. 29, Iss. 3, MARCH 2023

Received: 6 February 2023

Received in revised form: 20 February 2023

Accepted: 6 March 2023

Available online: 30 March 2023

Subject Heading: Financial system

JEL Classification: Н00

Pages: 484–506

https://doi.org/10.24891/fc.29.3.484

Valerii K. ZAKHAROV Lomonosov Moscow State University Moscow, Russian Federation
zakharov_valeriy@list.ru

https://orcid.org/0000-0002-1526-782X

Subject. The article considers the creation of money as a landmark historical shift from pre-State forms of the genesis of the State to early State and State forms.
Objectives. The aim is to show that money was created as one of the most important instruments of government, production, and distribution in early State and State social and historical formations.
Methods. The study employs my unique historical-system conception of the State and its social development.
Results. Based on the general theory of the world historical process, presented in L.E. Grinin’s works, I specified the description of the nomos as a subject of this process and a certain common form of the genesis of the State. The paper clarifies that nomos evolves through series of forced evolutionary and organizational stages of development. It shows that the transition from the non-monetary form of government, production, and distribution in nomos to the money-based form is an essential feature of the landmark shift.
Conclusions. The study demonstrates that money was also created as one of the most important instruments of government, production, and distribution in the early State and State nomos. In this landmark invisible instrument, two social-psychological methods of people management, called carrot and stick motivation, are far apart.

Keywords: organizational stage, historic shift, boundary, early State, force distribution

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