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I was under the impression that 2 is manifestly false (unless I'm a very weak sense) given currencies in use that retained some value after the issuing state fe
by dllthomas 5y ago
I was under the impression that 2 is manifestly false (unless I'm a very weak sense) given currencies in use that retained some value after the issuing state fell.
- alangibson 5y agoCan you give an example? You could see it being true temporarily just due to lack of any alternative. In any event, the parents take on 2 is not exactly correct. MMT people say that a primary source of demand for a currency is that taxes may only be paid in that currency. Governments spend money into existence and tax it out of existence.
- dllthomas 5y agoI believe the Somali shilling was the case I first heard of. There seems to have been a case in Iraq in the 90s as well with the "Swiss dinar". > [...] a primary source of demand [...] That indeed sounds much more plausible.
- dllthomas 5y agoI hope it's clear that I meant "in a very weak sense" - just noticed the typo.