econoblog 101
Schumpeter on Knapp in his 1954 HEA
Dirk Ehnts | Lecturer at Bard College Berlin
An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
...This needs the vaccination of Chartalism: only a too-big-to-fail organization that wants its nominal debts to have value as a byproduct of accomplishing other purposes–like governing–can durably levitate the value of its fiat money above zeroWCEG — Washington Center for Equitable Growth
The economic contribution of [Karl Denninger's] essay is that it represents the thesis advanced by German economist Georg Friedrich Knapp in The State Theory of Money (1924), an expose advocating the Chartalist approach to monetary theory claiming that money must have no intrinsic value and strictly be used as tokens issued by the government, or fiat money. Today, modern-day chartalists are from the school of thought known as Modern Monetary Theory (MMT).Forbes
...although a great deal of the suboptimal performance (sustained unemployment, lack of investment in infrastructure, education, and healthcare) has been due to a failure to understand and apply readily implementable state money & functional finance insights, there has also been another major source of economic suffering, resulting from the non-state-money side of the economy. The worldwide private credit money system has caused untold suffering and misery for millions. This side of the equation must be integrated into any functional finance insights that arose from Knapp, Innes, and others....Clint Balinger