Sacred Money - (Masterpieces on Money) 2nd Edition by Bernhard Laum (Hardcover)

About the Book

The long-awaited first English translation of "Heliges Geld," a masterpiece on money written by Bernhard Laum, uncovers the illusion of the origin of money and the market by tracing its roots back to antiquity.

Book Synopsis

Sacred Money presents a surprising and captivating theme, tracing the origin of money back to antiquity and unveiling its roots in the sacred legal order (nomos) and ritual. Laum compellingly demonstrates that money is a fundamental institution within the fabric of social life, extending beyond the pure economic domain.

This book stands as one of the great classics on money, and Laum is known as the founder of the theory of the religious origin of money, succeeding attempts by Marcel Mauss and Émile Durkheim. Throughout its history, the book has garnered fervent acclaim from scholars, leading to cyclical waves of interest over the past century since its initial release. Unfortunately, the book has suffered from the proliferation of one-sided interpretations in recent years, exacerbated by the absence of an English edition.

Laum peels away layer after layer, gradually revealing a chain of events that become evident to readers. Ultimately, he exposes the grand illusion on which the modern economy is based-the belief in the spontaneous creation of money and the market by free and equal individuals. It directly challenges the prevailing "catallactic theory of money," which asserts that money originated solely from secular exchanges and neoliberal ideology on money. This book takes readers on a thrilling and enlightening journey, tracing the evolution of money from the ancient Egyptian and Homeric periods to the height of the Roman Empire. Its structure resembles that of an "archaeological detective novel" (von Braun).

Laum's work was profoundly influenced by Georg Friedrich Knapp (1842-1926), the pioneer of the "state theory of money" and "chartalism," a nominalist understanding of money. Knapp's ideas left a lasting impact on renowned figures such as John Maynard Keynes, neo-chartalists, and Post Keynesians, including proponents of Modern Monetary Theory (MMT). In essence, while Knapp attributed the origins of money to the legal order and proclamations of the state, Laum delved even deeper into history, asserting that its roots lie within the sacred realm governed by ancient rituals or 'sacred' legal order. By doing so, he demonstrates that money represents a fundamental institution of social life that transcends mere economic considerations. To grasp its origins fully, one must explore the broader context of social life in antiquity.

Laum vehemently opposed methodological individualism, which isolates individuals, overlooks the intricate "conflicts in space and time," and neglects the embeddedness of human beings within their cultural and societal contexts. In this regard, he shares a similar ethos with great thinkers such as Max Weber and Karl Polanyi. Grounded in this perspective, Laum criticized modern liberalism, which undermines the social fabric, and he instead advocated for a more cohesive "human community."

With the rising interest in the phenomenon of money among the general public, fueled by the popularity of Modern Monetary Theory (MMT), this book must captivate diverse audiences, including both academics and intellectual readers. This book is also a crucial resource for courses in economic history and economic sociology at universities, making it essential reading for students in these fields.

Review Quotes

"Laum in his interesting and useful volume 'Heiliges Geld' has suggested that a helping from a cooked cow at a feast was the original subsidiary unit, the ὀβελίσκος being not the spit itself but the quantity of meat which could be fished with one out of the common pot."

(John Maynard Keynes, Collective Writings, Vol XXVIII)

"Laum's theory about the origin of money through religious sacrifices came as a reaction against the materialistic conception which sought to explain the origin of money on pure utilitarian legal and commercial grounds. (...) His thesis, stated with force and with clarity, may be opposed but cannot be ignored. (...) Beyond doubt, Laum has tendered a great service by drawing attention to the neglected religious aspect of the origin of money."

(Paul Einzig, Primitive Money)

"Strikingly original"

(David Schaps, The Invention of Coinage and the Monetization of Ancient Greece)

"Archaeological detective novel ... He reveals the grand illusion of modernity" (Christina von Braun, Preface to the German edition)