Three difficulties with neo-Chartalism

• Eladio Febrero Paños ^[1]
  1. [1] Universidad de Castilla-La Mancha

     Universidad de Castilla-La Mancha

     Ciudad Real, España

     
• Localización: Bienestar y democracia económica global: Bilbao, 27-29 de marzo de 2008, 2008, ISBN 978-84-9860-067-4
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Neo-Chartalists have made three assertions which deserve qualification: (i) money has value because the state accepts it for the payment of taxes; (ii) the state has the ability to determine its value; and (iii) private bank money can be understood as a ‘leverage’ of fiat money. Conversely, we believe that money is accepted in the last instance because it is useful for cancelling bank debt; the power of the state to determine its purchasing power is limited, and bank deposits are not a leverage of fiat money. These criticisms do not challenge the validity of the whole approach but aim to make it clearer.