Abstract
All “modern money” systems (including those of the “past 4000 years at least” as Keynes put it) are state money systems in which the sovereign chooses a money of account and then imposes tax liabilities in that unit. It can then issue currency used to pay taxes. In this chapter we return to our analysis of the operation of today’s monetary system, examining the denomination of IOUs in the state money of account.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
bibliography
Aspromourgos, T. (2000). Is an Employer-of-Last-Resort Policy Sustainable? A Review Article. Review of Political Economy, 12(2), 141–155.
Atwood, M. (2008). Payback: Debt and the Shadow Side of Wealth. Anansi.
Barlett, D. L., & Steele, J. B. (1988, April 10). A Rich Texas Widow Could Save $4 Million. The Philadelphia Inquirer, A15.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Wray, L.R. (2024). The Domestic Monetary System: Banking and Central Banking. In: Modern Money Theory. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-47884-0_3
Download citation
DOI: https://doi.org/10.1007/978-3-031-47884-0_3
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-47886-4
Online ISBN: 978-3-031-47884-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)