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by svs 3753 days ago
Paper money (fiat currency in particular) gets value because you can pay debts and taxes with it.
2 comments
mamon 3753 days ago
No, paper money gets value because your government forces you to use it - not accepting payment in local currency is punished by fine or jail time in the most parts of the world.
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svs 3753 days ago
Correct. You can discharge any financial obligation with the legal tender and the recipient is obliged to accept it. We're saying the same thing.
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raincom 3753 days ago
You are correct. That's the foundation of Modern Monetary Theory.
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