[OPE-L:1865] Re: [MIKE WILLIAMS] electronic money

riccardo bellofiore (bellofio@cisi.unito.it)
Mon, 22 Apr 1996 08:36:15 -0700

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At 7:09 22-04-1996 -0700, Duncan K Foley wrote:

>1) All forms of modern money are debts of various nation-states. These
>states also have assets (in the case of the U.S., for example, immense
>land and natural resource holdings, as well as a large, if somewhat
>indeterminate power to tax future income) and it is presumably these
>assets that lend "credit" to the State's liabilities, including money.

They "lend 'credit'" or "are the collateral"? Moreover, should not
(outside)money be seen as mainly represented of loans by the Central Bank
to the State?

>2) As Paul Cockshott pointed out, the elaboration of various further
>forms, such as credit cards or electronic balances, whatever their
>technical base, are economically no different from other elaborations of
>credit. They all depend on a chain of convertibility back to the monetary
>liabilities of the nation-state.

Yes. However, convertibility gives stability to the unit of account. I am
not sure it has anything to do with money as such. In principle, it is
possible to have monetary systems without convertibility.


Riccardo Bellofiore e-mail: bellofio@cisi.unito.it
Department of Economics Tel: (39) -35- 277505 (direct)
University of Bergamo (39) -35- 277501 (dept.)
Piazza Rosate, 2 (39) -11- 5819619 (home)
I-24129 Bergamo Fax: (39) -35- 249975