Re: Putting Chartalism In Its Place?

[Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>]

James R. Olson wrote:

> 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?

No, but it does not follow that the value of a national currency chosen at
random is necessarily due to the power of that nation's government to tax.

IMO, taxation may help to start a currency, but once it is regularly
exchanged with other currencies it becomes self-sustaining.

Like training wheels on a bicycle, I suspect taxation eventually becomes
irrelevant to the value of a stable currency.

Harry Veeder