Re: Re. A General Framework for the Analysis of Currencies...

[Warren Mosler <mosler@xxxxxxxx>]

 

Gunnar Tómasson wrote:

 Warren: In response to my comments: The opening statement that "the monetary circuit begins with the vertical component" makes no sense considering that "taxpayers" are in a position "to offer goods and services in return for units of the currency" - the existence of such "goods and services" at the time of the State's introduction of taxation by monetary means implies the prior existence of a functioning monetary circuit. You write:How about their labor (see assumptions)?  Or things they can find laying around- like fire wood, stones for walls?  Or crops they grew, cattle they raised/found/had/whatever, etc.  Leather goods they made from the dead cows, bone implements, etc.

I really don't see any way the model suffers from what you say it suffers from.  You can start with as 'poor' a population as you wish.  It still 'works' as they at least have time.  ('time is money...')

Comment:

My argument concerns purely analytical aspects of the 'General Framework for the Analysis of Currencies' presented in your paper and, as such, is independent of historical aspects of the relationship between Money and State.

ok.  you say above <the existence of such "goods and services" at the time of the State's introduction of taxation by monetary means implies the prior existence of a functioning monetary circuit.>

I point out which goods and services can/do exist prior to/without monetization.
ok?

w

 

Gunnar