Mauchle, Urs ChristianUrs ChristianMauchle2023-04-132023-04-132022-02-21https://www.alexandria.unisg.ch/handle/20.500.14171/108972Neutrality of money is an economic shorthand expression of the idea that changes in the money supply only affect the price level of the economy and nothing else. Neither economics nor political philosophy has up-to-date answers to the question of what a proper notion of neutral money is and whether our contemporary monetary system is neutral or not. Nevertheless, most neoclassical economic models today are built on the axiom that money is indeed neutral. Based on those models, policy considerations are made, and young people graduate convinced that money is neutral. This study aims to provide orientation in this regard. The aim of this study is twofold: first, to understand the normative core of neutral money, and second, to analyse whether the current fractional reserve system can meet the attributes of such neutral money. Based on Peter Ulrichs integrative economic ethics and his idea of exploring the inherent normativity of economic rationality itself, the thesis explores the inherent normativity of neutrality of money. The thesis shows that monetary neutrality must be neutrality in regard to the good life. This would mean that neutral money must be an equally and unconditionally accessible, secure societal tool for everybody to pursue her or his individual life plan. Operationalised in quantitative terms, this means that money should not have any inherent effects on (1) GDP growth, (2) indebtedness, and (3) income and wealth distribution. However, the thesis shows that the fractional reserve system inherently violates those requirements. Based on the credit theory of money and post-Keynesianism, this thesis will prove that although there is no indication that the fractional reserve system itself has inherent effects on GDP growth, a growth imperative is induced by the general structure of capitalist economies. Yet, the fractional reserve system does have inherent effects on indebtedness and distribution. Money creation is always debt creation at the same time. This affects and destabilises the banking system in particular. Furthermore, the fractional reserve system inherently redistributes income and wealth within the economy. If indeed a neutral money should be our monetary policy aim, that new aim requires a great effort to realise it.enNeutralität des GeldesIntegrative WirtschaftsethikNeokeynesianismusGeldpolitikKredittheorieEDIS-5188integrative economic ethicsNeutrality of moneyPost-Keynesianismuscredit theory of moneypost-Keynesianismdoctoral thesis