Re: Putting Chartalism In Its Place?

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

Can you name a currency which is not used to pay taxes, and yet retains
value?

Comment:

Two related questions/answers:

1.   Can you name a currency which is not used to pay taxes?

No - in a world of tax-collecting nation states, all currencies are used to
pay taxes.

2.  Can you name a currency which is used to pay taxes, and yet loses its
value?

Yes - I recall my father having a worthless 5 billion (?) DM note.

Gunnar



----- Original Message -----
From: "James R. Olson, jr." <jhavok@xxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>; "post keynesian thought" <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, September 16, 2003 9:19 PM
Subject: Re: Putting Chartalism In Its Place?


> At 05:05 PM 9/15/03 +0100, Harry Veeder wrote:
> >
> >
> >> From: "Forstater, Mathew" <ForstaterM@xxxxxxxx>
> >> Date: Mon, 15 Sep 2003 14:41:40 -0500
> >> To: rosserjb@xxxxxxx, William F Hummel <wfhummel@xxxxxxxxxxx>
> >> Cc: pkt@xxxxxxxxxxxxxxxx
> >> Subject: Re: Putting Chartalism In Its Place?
> >> payment in settlement of taxes, taxpayers will be willing to accept
this
> >> means of payment because they can use it to pay taxes.  Everyone else
> >> will then be willing to accept it because they can use it to buy things
> >> from the taxpayers, or to pay debts to them, or to make payments to
> >> others who have to make payments to the taxpayers, and so on."  (p.
693)
> >>
> >
> >
> >This implies that if I don't pay taxes to a particular authority,
> >I will never accept that authority's currency.
>
> You do not need to pay taxes to value a currency, you merely need some
> access, even if it is indirect, to people who do pay taxes and will value
> the currency for that reason.
>
> Can you name a currency which is not used to pay taxes, and yet retains
> value?
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