Re: on money substance and abstract labor

From: Allin Cottrell (
Date: Mon Jun 07 2004 - 14:51:57 EDT

On Mon, 7 Jun 2004, Rakesh Bhandari wrote:

>    If governments could force the acceptance of a money merely by
> collecting taxes in it, then why do governments even bother
> borrowing money from abroad to finance their deficits?

Governments borrow from abroad to finance external (trade) deficits.
They are not generally in a position to levy taxes on foreigners.

Allin Cottrell

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