Re: Keynesian Christmas!-- and the collapsiing international

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

On Fri, 28 Dec 2001, Warren Mosler wrote:
> The new currency will function just fine if it is acceptable for
> payment of taxes.

Thought experiment:
A country introduces two currencies, both of which
are acceptable in the payment of taxes but one of which has a higher
expected rate of inflation.  (Keep things simple: only these point
expectations matter for the asset decision.)  Who will hold the high
inflation *currency*?

As always, expectations are a crucial determinant of asset holding.

Cheers,
Alan Isaac