Re: two currencies and Korean war

["Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>]

William F Hummel wrote to Allan Isaac:

<snip>
>I don't know who AI thinks is speaking for chartalism when he
>says "it does not explicitly acknowledge the role of
>expectations."  It should be obvious that chartalist theory is
>based on the assumption that those who don't pay taxes all work
>for the government's currency under the EXPECTATION that they
>gain something of value.  Which of course they do.
>

The weakness of chartalist theory is that it does not fully honour
its own prescriptive implications. A strong chartalism would have
everyone taxed according to their capacity to pay. This would avoid
the argument over which other expectations (e.g. those posited
by William Hummel) and institutions are necessary to make the theory
coherent.


Harry Veeder