coslap@aueb.gr
Mon, 13 Dec 1999 21:31:07 +0000
At 11:37 PM 12/12/99 -0500, Allin Cottrell wrote:
>On Sun, 12 Dec 1999, Duncan K. Foley wrote:
>
>> It's a bit more complicated than that, since the same volume
>> of coins can pay a larger tax bill at a higher velocity of
>> (tax) circulation.
>
>Interesting. How would one compute the velocity of tax
>circulation?
WHY WOULD YOU NEED TO CALCULATE IT? SIMPLY COLLECT TAXES AND MAKE
DISBURSEMENTS AT SHORTER INTERVALS.
>> Isn't the idea that the state regulates the exchange value
>> of coin by controlling its scarcity basically the quantity
>> of money theory of prices?
>
>It's related, but what is missing from the standard Quantity
>Theory, as I see it, is that the relevant scarcity is scarcity
>relative to the tax liability imposed by the state.
>
>Allin.
SURELY THE TAX LIABILITY IS AN OBLIGATION OF GIVEN NOMINAL VALUE THAT
CANNOT CHANGE AS A RESULT OF ALTERATIONS IN THE QUANTITY OF MONEY. IN
SETTLING IT, MONEY IS MEANS OF PAYMENT AND NOT MEANS OF CIRCULATION. HOW
WOULD YOU INCORPORATE THAT IN THE QUANTITY THEORY OF MONEY?
COSTAS
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