The property economic perspective Money & Finance The property economic perspective Pascal van Griethuysen PhD in Evolutionary Economics Research Fellow at UN Research Institute for Social Development Executive in Residence at Geneva Centre for Security Policy vangriethuysen@unrisd.org Roundtable in Human Centered Economics Inter-University Centre, Dubrovnik, Croatia February 1-3, 2017

Explaining capitalist directing force PROPERTY ECONOMICS’ INTERPRETATION Veblen (1904), Heinsohn & Steiger (1996), Soto (2000) property: constitutive institution of capitalism property dual potential material: concrete exploitation of resources (direct income) financial: engaging property in capitalisation processes (indirect) proprietors' cumulative enrichment capitalist self-expansionary nature

Capitalist Economy SOUND BANKING money creation / emission 3 pillars securitisation collateral, debtor’s solvency + reserves stable value (strong currency)

CAPITALIST SELF EXPANSION Property Economy CAPITALIST SELF EXPANSION money creation Property material & immaterial assets Financed activities monetary return monetary return circular & cumulative property self-expansion Condition : ↗ monetary value of engaged property

END : ↗ property value = monetary growth MEANS ? physical growth ( spatial expansion, biotic resources overexploitation, industrialisation, mineral resources depletion ) commercial strategies ( lay-off, delocalisation, marketing, advertising ) institutional strategies ( commodification, enclosure, market creation; selective deregulation & liberalisation ) profit driven innovations ( technical, commercial, financial & institutional ) property capitalisation & concentration ( acquisitions & fusions )

Implementing the transition INTEGRATED MULTI-LEVEL STRATEGY regulating capitalisation money creation orienting investments scoping property Property Financed activities monetary return allocating returns confining expansion