[OPE-L:1910] Re: Re: Re: Re: Re: Re: Re: the money supply

Duncan K. Foley (foleyd@cepa.newschool.edu)
Sun, 12 Dec 1999 16:20:14 -0500

It's a bit more complicated than that, since the same volume of coins can
pay a larger tax bill at a higher velocity of (tax) circulation. Isn't the
idea that the state regulates the exchange value of coin by controlling its
scarcity basically the quantity of money theory of prices?


>On Sat, 11 Dec 1999, Duncan K. Foley wrote:
>> The State might be able to force the coins to circulate
>> using police power, but can it enforce their value?
>They can raise the exchange value of coin by decreasing their
>emission or increasing the tax liability. They don't need to
>apply police power directly to enforcing the circulation of
>debased coin, only to the prosecution of counterfeiters and tax
>delinquents. (I assume they don't accept unminted metal in
>payment of taxes.)

Duncan K. Foley
Department of Economics
Graduate Faculty
New School University
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