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to be speculated on, and as a tool of empire to impose the monetary system of the
conqueror on a vanquished people. But the primary function of money – as a means of
exchange – has no particular moral connotations. Its function is related directly to its
definition – something a community agrees to use as a means of payment.
Of course, to make it work, money must have other practical attributes. As economist
Wolfgang Rosenberg says, ‘Apart from general acceptability, a good medium of exchange
… must be convenient in handling, easily divisible, homogeneous, difficult to counterfeit
and of a durable nature.’ 14
New Zealand’s History of Money Creation
Before I move on to the next chapter, which suggests an alternative model of globalisation,
I will look at the history of money creation in New Zealand. As we will see, our national
currency is a relatively recent phenomenon, and the existence of other forms of currency
has set a precedent for the possibility of alternatives in the future.
As in most other countries, there has been a continuing battle between politicians and
the commercial banks in New Zealand for the right to issue the money supply. Although
politicians have raised the matter in almost every decade since European colonisation, the
periods where the government acquired the sole right to issue money have been brief. Let
us look at the overall history first.
A Brief Economic History of New Zealand
As discussed earlier in this chapter, in pre­European days Maori had a gift society, which
saw bartering between iwi. Because property was held communally, this meant that barter
within iwi was minimal. Maori therefore had no word for money, although there was a
reciprocal hospitality system, and a koha, or gift, was commonly given by visitors. Severe
social and economic sanctions were imposed on those who did not return favours.
In early colonial days, whalers and traders brought British, French, Portuguese,