Money is privacy

An extensive literature in monetary theory has emphasized the role of money as a record-keeping device. Money assumes this role in situations where using credit would be too costly, and some might argue that this role will diminish as the cost of information, and thus the cost of credit-based transactions, continues to fall. ; In this paper we investigate another use for money: the provision of privacy. That is, a money purchase does not identify the purchaser while a credit purchase does. In a simple trading economy with moral hazard, we compare the efficiency of money is compared with that of credit, and we find that money may be useful even when information is free.

Nonbanks in the payments system

Nonbanks have always been a key component of the nation's payments system. In recent years, however, nonbanks have become even more prominent. This heightened visibility raises several questions. In which payments activities are nonbanks engaged? What roles do nonbanks play in specific payments types? What types of risk are potentially associated with nonbank participation? This paper begins to address these questions. Preliminary findings include: (1) Nonbanks are involved in a myriad of activities and roles, both in traditional and emerging payments types; (2) Nonbank business relationships with banks and other participants in the payments systems are often highly complex and interrelated; (3) Nonbanks are rarely directly involved in settlement activities and, hence, appear to be associated with limited settlement and systemic risk; (4) Both nonbanks and banks appear to be increasingly susceptible to operational risk factors. ; Published as a book in 2003.Payment systems ; Nonbank financial institutions ; Nonbank activities

U.S. consumers and electronic banking, 1995-2003

The availability and variety of electronic banking technologies in the marketplace has greatly expanded in recent years. For financial institutions, e-banking technologies can speed processing, reduce costs, and help attract and retain customers. For consumers, they can save time and money and may be more convenient than more traditional ways of banking. This article draws on data from two nationwide surveys to look at consumer use of such products and services as debit cards, pre-authorized debits, and computer banking, particularly as use relates to consumer demographic characteristics and consumer perceptions. ; The data show a consistent increase in the proportion of consumers using a variety of e-banking technologies. Consumer attitudes toward e-banking generally have become more positive over time, with more consumers seeing e-banking as convenient, familiar, easy to use, and secure. The use of some technologies, particularly debit cards, has become more democratized over time, but it is still the case that most e-banking technologies tend to be used by higher income, higher asset, younger, and better educated households. ; E-banking technologies hold the promise of helping families manage their money, pay their bills on time, and avoid overextending themselves with credit. To take full advantage of them, however, consumers need to become aware of the evolving array of e-banking technologies available to them and understand how different technologies fit with their financial management needs. Financial planners and consumer educators, working with both families and financial institutions, can help the promise become a reality.Electronic funds transfers ; Internet banking

Consumer credit in comparative perspective

We review the literature in sociology and related fields on the fast global growth of consumer credit and debt and the possible explanations for this expansion. We describe the ways people interact with the strongly segmented consumer credit system around the world—more specifically, the way they access credit and the way they are held accountable for their debt. We then report on research on two areas in which consumer credit is consequential: its effects on social relations and on physical and mental health. Throughout the article, we point out national variations and discuss explanations for these differences. We conclude with a brief discussion of the future tasks and challenges of comparative research on consumer credit.Accepted manuscrip

The Tragedy of Capitalism

A review of contemporary capitalism, and the debt-based money system, with a consideration of various monetary reform proposals within the context of a changing monetary realit

Costs and benefits of superfast broadband in the UK

This paper was commissioned from LSE Enterprise by Convergys Smart Revenue Solutions to stimulate an open and constructive debate among the main stakeholders about the balance between the costs, the revenues, and the societal benefits of ‘superfast’ broadband. The intent has been to analyse the available facts and to propose wider perspectives on economic and social interactions. The paper has two parts: one concentrates on superfast broadband deployment and the associated economic and social implications (for the UK and its service providers), and the other considers alternative social science approaches to these implications. Both parts consider the potential contribution of smart solutions to superfast broadband provision and use. Whereas Part I takes the “national perspective” and the “service provider perspective”, which deal with the implications of superfast broadband for the UK and for service providers, Part II views matters in other ways, particularly by looking at how to realise values beyond the market economy, such as those inherent in neighbourliness, trust and democrac

If not for money for what? Digging into the OS/FS contributors’ motivations

This paper analyses the data collected by two of the most significant surveys on the Open Source Software (OSS) contributors’ motivations with the aim of assessing if in the OSS products circulation we can recognise the characteristics of the modern way of giving, suggested by Godbout (2000). The analysis of the information collected seems to confirm that the intrinsic motivations (social/community and political) prevail over the extrinsic ones (monetary and signalling) when developers decide to join and stay in the OS community and that the feeling of reciprocity is shared by the majority of the community members. Therefore the OSS product circulation seems to fit into the characteristics of the gift circulation.open source software, reciprocity, gift economy