Money and Monetary Systems: Nature, Functions, and Implications for Human Flourishing

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Money and Monetary Systems: Nature, Functions, and Implications for Human Flourishing

Manuel Tacanho

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24 September 2025

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Academic Papers

Money and Monetary Systems: Nature, Functions, and Implications for Human Flourishing

Abstract:

Money is the cornerstone of indirect exchange societies and the fundamental good of the economy. Yet despite centuries of scholarship, money remains widely misunderstood—even within economics—leaving its nature, origins, and functions obscured. This paper demystifies money by examining its nature, its essential functions, and its implications for human society. Rooted in the Africonomics Theory of Exchange, Credit, and Money, it affirms that money is not a bureaucratic invention or state creation but a natural-moral institution that emerged organically from voluntary human exchange. Money enables cooperation across time and space, serving as unit of account, store of value, and medium of exchange. These functions make money indispensable to economic coordination, large-scale commerce, and civilizational progress. The paper also contrasts sound monetary systems with fiat regimes, showing how the latter—rooted in coercion and political manipulation—produce systemic injustice, instability, and impoverishment. By presenting a principled understanding of money, this paper highlights its central role in fostering structural justice, economic stability, and human flourishing.

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About the author

Manuel Tacanho

Manuel Tacanho

Manuel Tacanho is a social philosopher and economist; and the founder and president of the Afrindependent Institute.

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