Re: Putting Chartalism In Its Place?

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Barkley:

Re. the following:

>      I would also note that just because something is
> used as a medium of exchange does not mean it is a
> store of value.  Thus, tobacco and cigarettes have been
> used as media of exchange (and tobacco was even
> accepted in colonial Virginia for tax payments for awhile,
> although later displaced by receipts for tobacco).  But
> tobacco and cigarettes do not store very well and thus
> make lousy stores of value.  The store of value function
> is one that is often more separated from the other
> functions.  Many things serve as stores of value because
> of their durability, even if they are not media of exchange
> or units of account (or usable to pay taxes), e.g. land,
> although land has backed up some monies, e.g. the
> French revolutionary assignat and the German rentenmark.

Comment:

The "store of value" view of money is a carryover from Commodity Money days.

In the modern context, money is NOT a "STORE of value" - it has NO intrinsic
value.

Instead, modern money serves as "CLAIM on value".

The State levies taxes to obtain "claims on value" generated in the
non-State sector.

So does PRECISION OF LANGUAGE put Chartalism in its place!

Gunnar


----- Original Message -----
From: "Barkley Rosser" <rosserjb@xxxxxxx>
To: "William F Hummel" <wfhummel@xxxxxxxxxxx>; <pkt@xxxxxxxxxxxxxxxx>
Sent: Monday, September 15, 2003 6:00 PM
Subject: Re: Putting Chartalism In Its Place?


[snip]

>      I would also note that just because something is
> used as a medium of exchange does not mean it is a
> store of value.  Thus, tobacco and cigarettes have been
> used as media of exchange (and tobacco was even
> accepted in colonial Virginia for tax payments for awhile,
> although later displaced by receipts for tobacco).  But
> tobacco and cigarettes do not store very well and thus
> make lousy stores of value.  The store of value function
> is one that is often more separated from the other
> functions.  Many things serve as stores of value because
> of their durability, even if they are not media of exchange
> or units of account (or usable to pay taxes), e.g. land,
> although land has backed up some monies, e.g. the
> French revolutionary assignat and the German rentenmark.
> Barkley Rosser