tag:blogger.com,1999:blog-6245381193993153721.post3386964889946672777..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: What is Money? A Short AnalysisLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6245381193993153721.post-84345177442455941222013-07-03T15:25:11.014-07:002013-07-03T15:25:11.014-07:00Question:
You write that money can be...
"...Question: <br /><br />You write that money can be...<br /><br />"occasionally by unconventional means such as monetising a budget deficit."<br /><br />My question is...if the Central Bank were to simply credit the Treasury's General Account out of no where, without that money going into the economy...is that an example of exogenous money creation since it's not demanded by the public??<br /><br />Also then, suppose Congress appropriates a certain sum of that created money to build a battleship...without taxes or endogenous money obtainted from a debt instrument...<br /><br />Would that be an example of the U.S. causing real production funded by an injection of Exogenous money into, say, Newport News Shipbuilding's Checking Account in exchange for their building a battleship? <br />Cory Hoffmanhttps://www.blogger.com/profile/02900336338681626125noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-16026404634084168212010-07-06T01:35:46.256-07:002010-07-06T01:35:46.256-07:00This comment has been removed by the author.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-64413913482409177252010-06-28T18:37:41.339-07:002010-06-28T18:37:41.339-07:00Mr Welldodgy,
Thanks for your comment.
You are un...Mr Welldodgy,<br /><br />Thanks for your comment.<br />You are undoubtedly correct that "reward" is an element that explains many uses of money.<br /><br />But the other side of the coin is "obligation" or even "punishment": e.g., debt, taxes, fines, compensation.<br /><br />As I have said above, chartalist theory shows us that there is good reason to believe that state imposition of <i>taxes</i> had a major role in creating money function as a medium of exchange.<br /><br />RegardsLord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-19720090932588414042010-06-28T16:28:26.534-07:002010-06-28T16:28:26.534-07:00An aspect about 'what is money', that you ...An aspect about 'what is money', that you might like to consider apart from your aademic analysis, is that money is used as a reward. That simple premise ultimately explains the behaviour of money.<br /><br />Money is given and demanded as the reward for skills, work and even just lending money!. It is essentially motivational, both out of necessity and greed.<br /><br />Money is only important in that it can be changed into something of real value to the individual, whether it be food or Chelsea football club.Mr Welldodgynoreply@blogger.com