Resumen de Three difficulties with neo-Chartalism
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.
