Akira MATSUMOTO (akiram@mail.ucr.edu)
Wed, 15 Dec 1999 12:36:28 -0800
Dear Member
Now I try to put the money supply debates on this ML in order.
This debate has a few points at issue. But there are the following questions
on the fundamental part.
*What is the real nature of the contemporary currency?
*Why can the contemporary currency circulate ?
*Is gold still the money ?
One side adresses the contemporary currrency as the paper money.
+It's circulation is based on it's tax liability to the state.
+It has the value and the measure of value as such. In this point someone
denies the labour theory of value itself.
+Moreover the international currency is also the paper money.
+Gold is already not the money and money is not the commodity.
Paul admits the contemporary currency as the credit money. But I guess that
he also emphasizes the function as a unit of account on the ground of the
circulation of currency or the substance of credit. In this sense his
argument seems to be closer to this group.
The other side adresses the contemporary currrency as the credit money.
+It's circulation is based on the principle of means of payment.
+They think that the contemporary currency just functions in place of the
money. Therefore the money or measures of value is ultimately gold. However
I guess this group does't always consider gold as the money, but the
commodity money. They think the present money is gold because we cannot
point out another commodity as money.
+The international currency is also the credit money.
bye
Best Wish
Akira
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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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