Re: tax driven currency - Paul Davidson's comments

[Christopher Niggle <niggle@xxxxxxxxxxxxxx>]

June 6

I am in agreement with Paul Davidson's comments on Mosler's views on
money, but can't resist picking one nit.

Marx does NOT hold to the quantity theory of money in Volume III of
Capital.  To the contrary, his theoretical statements and discussions of
historical examples of financial crises reads very much like Keynes and
Minsky....extended discussions of the effects of speculative borrowing and
lending, money supply endogeneity, the role of interest rates, and so
forth.

Of course, Marx himself never finished preparing that work for
publication, and the Volume I discussion of money does focus on
convertible
paper currency and commodity money forms.  But still, Marx apparently
worked out very sophisticated and reasonably accurate monetary theory: a
kind of "pre Keynesian" model.

Chris Niggle