Argentina and Fiat money

["Gregoire de Nowell (ci-devant)" <GN842@xxxxxxxxxxxxxxxxx>]

I note that the Argentinian and Brazilian cases
described by Laura, as well as the russian example,
are serious attacks on the notion that the govt can
value money simply through the fact that it exacts
taxes on same.  Actors in the economy do seek out
subtitution possibilities, and the govts ability to
set value is limited accordingly.  the notion that
value resides in the coercive element of taxes
seriously misrepresents the nature of economic
transactions, which "in their essence" are
cooperative (when efficient) and which tend to become
seriously inefficient when coercion is used (even
"at the margin").  that is not to say that
some social systems do not opt for coercion,
whether non-capitalist or imperialist.

greg nowell