Akira MATSUMOTO (akiram@mail.ucr.edu)
Tue, 14 Dec 1999 10:26:04 -0800
Dear Member
I intend to try to put this money-supply-debates in order after a while.
Now I show my opinion about Dr. COSTAS's following coments.
> 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
I think the intrinsic nature of the contemporary currency is the credit
money, that is means of payment.
Therefore it's circulation is based on the offset principle. That, " To the
extent that they ultimately cancel each other out , by the balancing of
debts and claims, they function absolutely as money, even though there is no
final transformation into money proper".
As far as the offset principle is be at work, the contemporary credit money
can circulate in place of the money and also function as means of
circulation.
Basically we can expalin the contemporary money as I mentioned. But we need
more expalnation about the state-cfredit and the transformation to the paper
money.
By the way, there are the following comments in the past.
> > > On the other hand, have there been any empirical investigations using
> > > value categories which have assumed that gold *is* the money
> > > commodity?
> > Not that I know. If somebody has information about it, I would very much
> > like to know.
>
> Does it bother you that there, apparently, have been no such studies?
>
> Even if there have not been such studies to date, do you think that such
> studies are *possible*? If so, how?
I can not get what
>>>empirical investigations using value categories which have assumed that gold
>>>*is* the money
>>> commodity
means perfectly.
But if I consider it as the investigation on the assumption that gold is
money, I know several papers in Japanese.
For example, the study of estimating the de facto standard of price from the
product cost of gold and the International conparative cost ( the exchange
rate of labour among the international trade) and so on.
I think that broadly meaning, my former paper could be also a kind of
empirical study about the foregin exchange rate on that assumption.
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MATSUMOTO, Akira
Visiting Scholar
Department of Economics,
University of California, Riverside
1150 University Avenue
Riverside, CA 92521-0427 USA
Phone 909-787-5037x1575 or X1570
Fax 909-787-5685
Email: akiram@mail.ucr.edu
________________________
Associate Professor on Money and Banking
Department of Comprehensive Policy Making
school of Law & Letters
EHIME University
Matsuyama, Ehime
790-8577, Japan
Tel:+81-89-927-9237(office)
FaX: +81-89-927-8916
E-mail: amatsu@ll.ehime-u.ac.jp
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