From: clyder@GN.APC.ORG
Date: Tue Apr 29 2003 - 16:56:20 EDT
Quoting gerald_a_levy <gerald_a_levy@MSN.COM>: > Paul C wrote on Tuesday, April 29: > > > I want to consider the obverse situation - what validates > > the money issued by the state bank and or the credit system. > > Exchange. > > The state bank can issue promissory notes, but those notes > must still pass the "test" of exchange to be socially validated > as money. If, for whatever reason, those notes are not > accepted as a medium of exchange and if those notes are not > able to serve the other functions of money, then they don't > become, or continue to be, money and revert to what they were > before being issued by the state bank, i.e. just pieces of paper. > > In solidarity, Jerry This is not adequate Jerry. The point I am making relates to the general phenomenon of inflation, where state bank notes continue to function as money but depreciate. I am not concerned with the rare situations in which the currency becomes completely worthless - but the more mundane phenomenon of monetary inflation. A dollar is still accepted as a medium of exchange in the US but it is worth significantly less than it was 30 years ago say. > >
This archive was generated by hypermail 2.1.5 : Fri May 02 2003 - 00:00:01 EDT