Justice as Virtue in an Economic Context

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1 Justice as Virtue in an Economic Context By Diego Alonso-Lasheras BRILL LEIDEN o BOSTON 2011

2 Acknowledgements xi Introduction 1 Chapter One. The Birth of a New World: Economics and Theology in the Sixteenth Century Introduction Luis de Molina The Birth of a New Economy The Shifting Center of Gravity Manufactures, Trade and the Curse of Gold New Financial Instruments: Companies, Bills of Exchange and Lending A Pious Merchant Class The Economic Consequences of Imperial Destiny A New Science for a New World Mariners, Conquistadors and Missionaries and the Importance of Doing The Importance of Doing The Impact of the Movable Type Coping with Change and the Changing Paradigm of Science Moral Theology in Sixteenth-Century Spain and Portugal Francisco de Vitoria and Aquinas' Return Nominalism and its Fruits in Ethics Probabilism: Different Kinds of Knowledge and Recta Ratio Science, Faith, Opinion, Doubt and Scruples Probabilism The Problems of Divine Grace The Theological Controversies regarding Grace The Political Dimension of Divine Grace The Concordia The Theological Problem: The Common Ground of Banezians and Molinists 48

3 VIII 7.2. Molinism Indeterminism Triplex est sciencia in Deo Consequences for Moral Theology 52 Chapter Two. Molina's Fundamental Moral Theology Introduction De Iustitia et lure Genesis of the Book: Teaching Methods and New Literary Genres Structure and Method Structure of the Book Structure of a Disputation The Ways of Moral Reasoning Fundamental Moral Theology Use of the Bible Molina's Conception of Natural Law De Legibus et Constitutionibus The Theological Nature of Natural Law Ius and Lex IusNaturale LexNaturalis Jesuit Spirituality The Spiritual Exercises The Jesuit 'Way of Proceeding' Casuistry Ecclesiastical Development The Influence of Nominalism High Casusitry Conclusion 95 Chapter Three. Justice and the Origins of Private Property Grace and Property: An Often Repeated Discussion The Medieval Inquiry Regarding Property: Theologians, Canonists and the Spiritual Franciscans Soto and the Plight of the Poor Molina on Private Property: A Theological Problem Dominium: Definition and Kinds The Original Common Property of Goods The Traditional Doctrine Molina's View of the Original Community 107

4 IX 2.3. The Origin and Justification of Private Property lus Naturale and Ius Gentium: Virtue and Human Law Conclusions on Private Property The Common Good of the Respublica: Politics and Economics 121 Chapter Four. Three Specific Topics: Usury, Prices and Money Exchange Introduction Usury The Classical Definition and Its Unlawfulness Divine and Human Law Natural Law Case against Usury Titles of Interest Forced Lending and Mons Pietatis: The Development of the Titles of Interest The Acceptance of Lending: Labor, Damnum Emergens, Lucrum Cessans and Periculum Sortis The Just Price Molina and His Predecessors Communis Aestimatio: A Decision within the Community Natural Prices Communis Aestimatio Economics and Chrematistics Monopolies and the Genovese Wool Trade Fixed Legal Prices Information, Economic Expectations and Justice A Just Market Money Exchange and Credit Creation Introduction Types of Exchange and Its Lawfulness Petty or Manual Exchange A Strange Monetary System The Difficulties of Exchange Bills Different Values of Money The Problems of the Creation of Credit Moral Dimensions of Money Conclusion 182

5 X Chapter Five. Justice as Virtue in an Economic Context Justice a Virtue Transforming Paradigms Justice in General Meanings of Justice Justice as Moral Virtue The Object of Justice: Ius and its Divisions. The Order of Reality The Importance of Cultural Contextualization The Detailed Analysis of Casuistry Cultural Embeddedness of Economic Practices The Moral A Prioris of Case Building The Basic Metaphor Regarding Society: The Body The Origins of the Idea and the Respublica Christiana Economic and Moral Implications of the Organic Model Economics of a Body The Economic Common Good Taxes and the Common Good Economics: A Probable Science Church and State: The Role of Charity Church and State Ecclesiology and Moral Theology Justice and Charity Money, Metaphysics and Society Risk, Profit, and the Distribution of Wealth Business, Risk and Gambling Risk and Indetermination Wealth Creation and Distribution Law and Prudence: Its Importance for Justice 218 Conclusion Molina on Economics and Ethics Molina on the Natural Law Molina and Methodology Molina on Justice and the Common Good Conclusion 231 Bibliography 233 Index 241

Theologians and Contract Law

Theologians and Contract Law The Moral Transformation of the Ius Commune (ca. 1500-1650) By Decock S NIJHOFF PUBLISHERS LEIDEN BOSTON 2013 Acknowledgments Prologue Notes on the Text and Its Modes of Reference