[Pen-l] money

["McDonough, Terrence" <terrence.mcdonough@xxxxxxxxxxxx>]

>I think that the chartalist idea makes a lot of sense. But the key
issue is whether or not the money is scarce.<  JD

Taxation creates the demand for money in this argument.  It also makes sure the money is scarce by removing it from the economy.  Government spending supplies the money in the first place.  Jim is right this all depends on the effective power of the state.  This is an alternative to the standard origin story where a universal commodity intermediates what used to be barter.  The market does not generate its own currency initially and consequently monetary economies are intimately imbricated with the state from their origin.

Terry
_______________________________________________
pen-l mailing list
pen-l@xxxxxxxxxxxxxxxxxx
https://lists.csuchico.edu/mailman/listinfo/pen-l