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Market‐hampering Land Speculation: Fiscal and Monetary Origins and Remedies
Author(s) -
Foldvary Fred E.
Publication year - 1998
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1998.tb03382.x
Subject(s) - speculation , economics , scope (computer science) , real estate , monetary economics , money supply , money market , market economy , monetary policy , business , finance , computer science , programming language
A bstract Market‐hampering land speculation destabilizes and distorts development, and shifts income unjustly to landowners. Its fiscal origin is the lack of public collection of the site rent. The monetary origin is a centrally controlled money supply that injects excessive credit, fueling malinvestments in real estate. The remedies are both the public collection of land rent and a free market in money and banking, hence a money supply that responds flexibly to market demand while maintaining a stable unit of account. Rent collection option contracts could increase the scope of market‐enhancing land speculation that spreads and reduces risk.