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20 sats \ 1 reply \ @Undisciplined 14h \ on: How MMT Advocates View Money and the State econ
It is true that being forced to pay taxes in dollars provides a non-zero floor on the dollar's value. The problem is that it doesn't do any better than that: i.e. the dollar can depreciate to any fraction of its current value and still serve that tax paying function.
That is good only for the tax paying function! I don’t quite understand people using other money for their other transactions. I know using the FRN is the easiest way to work because it is legal tender, whereas everything else shows all the functions of a commodity money, even the settling on the price of money in terms of the goods. If we all started doing this, everyone would quickly realize the faults of the FRN.
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