Metallism

Carl Menger (1840–1921) theorized that money came about when buyers and sellers in a market agreed on a common commodity as a medium of exchange in order to reduce the costs of barter.

In this system, buyers and sellers of real goods and services establish the medium of exchange, independently of any sovereign state.

Schumpeter categorized the Menger position, that a commodity link is essential to understanding the origins and nature of money, as "theoretical metallism".

[5][6] [7] In the broad sense of the term, which tends to be used only by scholars, metallism considers money to be a "creature of the market", a means to facilitate exchange of goods and services.

Understood in this broad sense, metallism reflects the majority view among mainstream economists, which has prevailed since the early 19th century.