Regional and Business Studies, Vol 3, No 1 (2011)

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THE DYSFUNCTIONAL OPERATION OF MONEY

Gábor SÁRDI, Katalin SZENDRŐ

Abstract


A stable society requires a stable economy, and that requires the foundation of a stable money and currency system. In order to understand many of the typical problems facing a society it is important to go beyond social, political and general economic issues to investigate the essence of the whole system, the stock it is based on: the money. The aim of this study is to trace the basic dysfunctional structures ingrained in the current global financial and monetary system and to present the consequences of those structures' existence. The conclusion of the research suggests that there is a considerable correlation between the actual operation of money and most of the serious threats societies and humanity as a whole face nowadays: The regularly occurring economic crisis, the record levels of debt, the increasing level of unemployment, inflation, the growing gap between rich and poor, and the environmental degradation are all examples of the negative effects the study highlights as inevitable consequences of our monetary system. In its conclusion, this report introduces an alternative money system that could help solve economic problems for the communities faced with such problems.
Keywords: debt, interest, inflation, unemployment, community currency

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