Re: Chartalism as Alternative to Neo-liberalism

["Hugh Whinfrey" <econ@xxxxxxxxxxxx>]

Henry writes:

>While a government's authority to levy taxes anchores a sense of value
>in its currency, the specific value of that currency is a function of tax policy
>(inclusive of enforcement), which can be wise and unwise, progressive or regressive,
>etc. While parenthood bonds parents to their children, that bond is complicated by all
>kinds of syndromes, such as Oedipus complex, Electra complex, etc.

Thanks for your response. I certainly do recognise that the
connection has many different aspects and nuances, yet I
guess I see the enforcement aspect as a 'necessary condition'
whereas many of the other myriad of considerations seem
to really involve synthesising a combination of policies comprising
a 'sufficient condition'. The acid test being which single leg can you
knock out from under the table and have it always fall over.

More to the point though, what I'm driving at is that the
choice of a monetary system is highly intertwined with the
'character' and 'muscle' of the central government involved,
and it hence should be matched with it.
.
The more militaristic democracies and more totalitarian-like states
seem to be able to make fiat currencies work, at least inside their
borders. The smaller countries with limited governmental resources,
or those seeking a less prospectively represive regime, should perhaps
seek a different solution.

To the point - implementing Chartalism in Argentina *may* ultimately
be the equivalent of advocating a return to the rule of the Generals,
i.e.a repressive right-wing government. At least I think such a
prospective consequence should be considered in detail before
any choice is made as it has geopolitical ramifications beyond simply
what Argentina owes foreign banks.

Hugh