Re: Liquidity Preference and State Theory of Money

["Gunnar Tomasson" <gunnar.tomasson@xxxxxxxxxxx>]

Warren:

The point at issue has nothing to do with floating vs. fixed exchange rates.

Gunnar

----- Original Message -----
From: "Warren Mosler" <mosler@xxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Thursday, May 01, 2003 8:18 PM
Subject: Re: Liquidity Preference and State Theory of Money


> with a floating exchange rate it makes no difference.
> with a fixed exchange rate it does.  both are part of
> the 'state theory of money.'
>
> warren
>
>
> --- "Forstater, Mathew" <ForstaterM@xxxxxxxx> wrote:
> > With regard to the subject header but not the
> > content, we all know that
> > Keynes asked the question why would anyone hold part
> > of their wealth in
> > money rather than in higher interest-bearing or
> > profit-earning assets,
> > and replied that there are the transactions,
> > precautionary and
> > speculative motives for doing so, and later added
> > the finance motive, as
> > Paul D. has taught us.
> >
> > Would the state theory of money imply that "to pay
> > taxes" should be
> > added to the list as a separate item, or does it
> > fall under one of the
> > others?
> >
>
>
> =====
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