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.
Thanks, Ralph. The MMT position is that effectively enforced taxes are sufficient to ensure a demand for a national currency; i.e., they are a sufficient condition but conceivably they might not be a necessary condition (though historically they have been present, as you acknowledge). In other words, enforcement of taxes is a way to guarantee an acceptance of the currency rather than hope that some other factor or combination of factors will kick in to bring about acceptance.
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Thanks, Ralph. The MMT position is that effectively enforced taxes are sufficient to ensure a demand for a national currency; i.e., they are a sufficient condition but conceivably they might not be a necessary condition (though historically they have been present, as you acknowledge). In other words, enforcement of taxes is a way to guarantee an acceptance of the currency rather than hope that some other factor or combination of factors will kick in to bring about acceptance.
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