[anonporridge]

Na, taxes create demand for currency, which maintains the currency's value. Then you just print or borrow the currency into existence to fund the government.

People are forced to acquire the currency to pay their taxes or risk being assaulted by the violence of state and dispossessed of a lot of their stuff and/or freedom.

[taneq]

Is this MMT? There was a flurry of articles about it a couple of years ago, airily explaining that it’s fine for all the governments to print unlimited money now because they can just curb any inflation by raising taxes.

Ignoring the fact that elected governments do not, of course, do that.

[peyton]

This is complete bullshit. There’s no model with explanatory power.

[hackandthink]

"Fiscal Theory of Money" is a nice story. Economists often tell worse stories about money (Graeber).

Fiscal Theory of Price Level seems to be inspired by Fiscal Theory of Money.

"The literature on the fiscal theory of the price level (FTPL) integrates discussion of monetary and fiscal policy, recognizing that fiscal policy can be a determinant, or even the sole determinant, of the price level"

Christopher A Sims: Paper Money

https://scholar.google.com/citations?view_op=view_citation&h...

https://en.wikipedia.org/wiki/Christopher_A._Sims