Military fiat is a process whereby a decision is made and enforced by military means without the participation of other political elements. The Latin term fiat, translated as "let it be," suggests the autocratic attitude ascribed to such a process. For example, many coups involve the imposition of a new government by military fiat.
A military is a heavily-armed, highly-organised force primarily intended for warfare, also known collectively as armed forces. It is typically officially authorized and maintained by a sovereign state, with its members identifiable by their distinct military uniform. It may consist of one or more military branches such as an Army, Navy, Air Force and in certain countries, Marines and Coast Guard. The main task of the military is usually defined as defence of the state and its interests against external armed threats. Beyond warfare, the military may be employed in additional sanctioned and non-sanctioned functions within the state, including internal security threats, population control, the promotion of a political agenda, emergency services and reconstruction, protecting corporate economic interests, social ceremonies and national honor guards.
Latin is a classical language belonging to the Italic branch of the Indo-European languages. The Latin alphabet is derived from the Etruscan and Greek alphabets and ultimately from the Phoenician alphabet.
An autocracy is a system of government in which supreme power is concentrated in the hands of one person, whose decisions are subject to neither external legal restraints nor regularized mechanisms of popular control. Absolute monarchies and dictatorships are the main modern-day forms of autocracy.
Historically, military fiat had no relation to particular theories of economics or how to use the power of the state ("political science"). It was simply seized by the powerful with some support from empowered citizens - typically resulting in a monarchy where power was passed on to heirs with no public consultation. Over time, this evolved into consultative systems, e.g. of other nobles holding fiefdoms, e.g. of public in parliaments. [ citation needed ]
Political science is a social science which deals with systems of governance, and the analysis of political activities, political thoughts, and political behavior. It deals extensively with the theory and practice of politics which is commonly thought of as determining of the distribution of power and resources. Political scientists "see themselves engaged in revealing the relationships underlying political events and conditions, and from these revelations they attempt to construct general principles about the way the world of politics works."
A monarchy is a form of government in which a single person holds supreme authority in ruling a country, also performing ceremonial duties and embodying the country's national identity. Although some monarchs are elected, in most cases, the monarch's position is inherited and lasts until death or abdication. In these cases, the royal family or members of the dynasty usually serve in official capacities as well. The governing power of the monarch may vary from purely symbolic, to partial and restricted, to completely autocratic.
In modern politics and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries.
In democracies, however, the political parties who run for office to represent the public will, must agree to certain guarantees to use power for public good - the relation between military and police powers is clearer but not obvious. In all countries, some fundamental decisions are made by the administration "without the participation of other political elements", and in general the administration of money has been one of those functions. Public recourse is limited if the state relies on any other nation for major military support, e.g. then-communist Poland's and East Germany's reliance on the Soviet Union. So "a decision is made and enforced by military means" could be anything done by the administration or bureaucracy as a normal part of its foreign policy.[ citation needed ]
Democracy is a system of government where the citizens exercise power by voting. In a direct democracy, the citizens as a whole form a governing body and vote directly on each issue. In a representative democracy the citizens elect representatives from among themselves. These representatives meet to form a governing body, such as a legislature. In a constitutional democracy the powers of the majority are exercised within the framework of a representative democracy, but the constitution limits the majority and protects the minority, usually through the enjoyment by all of certain individual rights, e.g. freedom of speech, or freedom of association. "Rule of the majority" is sometimes referred to as democracy. Democracy is a system of processing conflicts in which outcomes depend on what participants do, but no single force controls what occurs and its outcomes.
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Any item or verifiable record that fulfils these functions can be considered as money.
Poland, officially the Republic of Poland, is a country located in Central Europe. It is divided into 16 administrative subdivisions, covering an area of 312,696 square kilometres (120,733 sq mi), and has a largely temperate seasonal climate. With a population of approximately 38.5 million people, Poland is the sixth most populous member state of the European Union. Poland's capital and largest metropolis is Warsaw. Other major cities include Kraków, Łódź, Wrocław, Poznań, Gdańsk, and Szczecin.
Theories vary on how to measure "participation of other political elements."
In economics, fiat is one of three ways to guarantee the value of money, credit money and commodity money being alternatives - but both relying to some degree on the fiat. True fiat money has no trust or product value of its own, but is backed only by trust in the issuing government and its ability to collect taxes or require conversion of some other resource into currency.[ citation needed ]
Economics is the social science that studies the production, distribution, and consumption of goods and services.
Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects that have value in themselves as well as value in their use as money.
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. It was introduced as an alternative to commodity money and representative money. Commodity money is created from a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange. Representative money is similar to fiat money, but it represents a claim on a commodity.
This view is questioned by some theories of political economy that argue that there is always some intrinsic reliance on trust, or expectation of the delivery of the commodity itself. Critics of these views argue that withholding taxes in domestic trade or defying powerful nations regarding trade in narcotics or arms will very rapidly prove dangerous or fatal to some of the participants - and, furthermore, that at least some of these decisions are unpopular and are not reflective of the public will. This is a common accusation made by the anti-globalization movement which argues that governments have been elected on a mandate to oppose global free trade and instead pursued it.[ citation needed ]
Political economy is the study of production and trade and their relations with law, custom and government; and with the distribution of national income and wealth. As a discipline, political economy originated in moral philosophy, in the 18th century, to explore the administration of states' wealth, with "political" signifying the Greek word polity and "economy" signifying the Greek word "okonomie". The earliest works of political economy are usually attributed to the British scholars Adam Smith, Thomas Malthus, and David Ricardo, although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781).
The anti-globalization movement, or counter-globalization movement, is a social movement critical of economic globalization. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist movement, anti-corporate globalization movement, or movement against neoliberal globalization.
Free trade is a trade policy that does not restrict imports or exports; it can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.
The use of the military fiat to back economic transactions is what a given theory of political economy actually justifies, e.g. in the political economy of capitalism, military force is justified by the protection of property rights (which are presumed to optimize economic outcomes). Adam Smith defined "defense, infrastructure, justice, education and a stable currency" as the role of government. All defined, in his time, 1776, strictly by a military fiat in most countries, although Britain had a nascent democracy. When the United States broke with the British Empire and its military hegemony in that same year, it was to establish a fiat of its own.[ citation needed ]
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets. In a capitalist market economy, decision-making and investment are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.
Adam Smith was a Scottish economist, philosopher and author as well as a moral philosopher, a pioneer of political economy and a key figure during the Scottish Enlightenment, also known as ''The Father of Economics'' or ''The Father of Capitalism''. Smith wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. In his work, Adam Smith introduced his theory of absolute advantage.
Smith wrote specifically against monetarism, where fiat would be exploited to protect favored industries, monopolize precious metals, and other goals that were not generally shared between the state and the more general public. [ citation needed ]
The later contributions of David Ricardo and John Stuart Mill led to the first theory of (classical) political economy.[ citation needed ]
A currency, in the most specific sense is money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money in common use, especially for people in a nation. Under this definition, US dollars (US$), pounds sterling (£), Australian dollars (A$), European euros (€), Russian rubles (₽) and Indian Rupees (₹) are examples of currency. These various currencies are recognized as stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.
Financial capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc.
In economics and political science, fiscal policy is the use of government revenue collection and expenditure (spending) to influence the economy. According to Keynesian economics, when the government changes the levels of taxation and government spending, it influences aggregate demand and the level of economic activity. Fiscal policy is often used to stabilize the economy over the course of the business cycle.
A market system is any systematic process enabling many market players to bid and ask: helping bidders and sellers interact and make deals. It is not just the price mechanism but the entire system of regulation, qualification, credentials, reputations and clearing that surrounds that mechanism and makes it operate in a social context.
Purchasing power is the amount of goods and services that can be purchased with a unit of currency. For example, if one had taken one unit of currency to a store in the 1950s, it would have been possible to buy a greater number of items than would be the case today, indicating that the currency had a greater purchasing power in the 1950s. Currency can be either a commodity money, like gold or silver, or fiat money emitted by government sanctioned agencies.
Monetary reform is any movement or theory that proposes a system of supplying money and financing the economy that is different from the current system.
Medium of exchange is one of the three fundamental functions of money in mainstream economics. It is a widely accepted token which can be exchanged for goods and services. Because it can be exchanged for any good or service it acts as an intermediary instrument and avoids the limitations of barter; where what one wants has to be exactly matched with what the other has to offer.
Hard currency, safe-haven currency or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's hard status might include the long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank.
In economics, shock therapy is the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large-scale privatization of previously public-owned assets.
In classical economics, Say's law, or the law of markets, states that "Supply creates its own demand", the aggregate production necessarily precedes an equal quantity of aggregate demand. Say's Law is often incorrectly said to state that production inherently creates consumption. In his principal work, A Treatise on Political Economy, Jean-Baptiste Say wrote: "A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value." And also, "As each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase."
The People's Front for Democracy and Justice is the founding and ruling political party of the State of Eritrea. The successor to the formerly left-wing nationalist and Marxist–Leninist Eritrean People's Liberation Front (EPLF), the PFDJ holds itself open to nationalists of any political affiliation. The leader of the PFDJ party and current President of Eritrea is Isaias Afewerki.
The law of value is a central concept in Karl Marx's critique of political economy first expounded in his polemic The Poverty of Philosophy (1847) against Pierre-Joseph Proudhon with reference to David Ricardo's economics. Most generally, it refers to a regulative principle of the economic exchange of the products of human work, namely that the relative exchange-values of those products in trade, usually expressed by money-prices, are proportional to the average amounts of human labor-time which are currently socially necessary to produce them.
The history of money concerns the development of social systems that provide at least one of the functions of money. Such systems can be understood as means of trading wealth indirectly; not directly as with barter. Money is a mechanism that facilitates this process.
Modern Monetary Theory or Modern Money Theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly for a government and unemployment as the evidence that a currency monopolist is restricting the supply of the financial assets needed to pay taxes and satisfy savings desires. MMT is seen as an evolution of chartalism and is sometimes referred to as neo-chartalism.
"Mutual credit" is a term mostly used in the field of complementary currencies to describe a common, usually small scale, endogenous money system.
In classical political economy and especially Karl Marx's critique of political economy, a commodity is any good or service produced by human labour and offered as a product for general sale on the market. Some other priced goods are also treated as commodities, e.g. human labor-power, works of art and natural resources, even though they may not be produced specifically for the market, or be non-reproducible goods.
Economic democracy is a socioeconomic philosophy that proposes to shift decision-making power from corporate managers and corporate shareholders to a larger group of public stakeholders that includes workers, customers, suppliers, neighbours and the broader public. No single definition or approach encompasses economic democracy, but most proponents claim that modern property relations externalize costs, subordinate the general well-being to private profit and deny the polity a democratic voice in economic policy decisions. In addition to these moral concerns, economic democracy makes practical claims, such as that it can compensate for capitalism's inherent effective demand gap.