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All money ever has had an associated liability. Commodity money absolutely relied on the face value as the basis of the commodity value. Any metal/face value di
by hgomersall 11mo ago
All money ever has had an associated liability. Commodity money absolutely relied on the face value as the basis of the commodity value. Any metal/face value disparity could lead to cross border arbitrage (making use of counterfeiting), but intrinsic to the process is the associated liability of the issuer. Otherwise you're just trading assets.
- EGreg 11mo agoSeigniorage doesnt create liability But commodity money doesn’t require seigniorage
- hgomersall 11mo agoSeigniorage absolutely relies on the fact that money redemption value is different to the value of metal (or whatever). That difference is the liability.