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.
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© 2015 L. Randall Wray
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Wray, L.R. (2015). The Domestic Monetary System: Banking and Central Banking. In: Modern Money Theory. Palgrave Macmillan, London. https://doi.org/10.1057/9781137539922_4
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DOI: https://doi.org/10.1057/9781137539922_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-53990-8
Online ISBN: 978-1-137-53992-2
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