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TAX DRIVEN MONEY by Mathew Forstater
One of the clearest and earliest references to the idea that a state-issued currency not tied to gold or any other commodity or currency can be managed through taxation and the declaration of public receivability is the now oft-quoted passage from Adam
Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations:
A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money; even though the term of its final discharge and redemption should depend
altogether on the will of the prince. (Smith, 1776, 312)
Cannan’s “sidebar” (his summary of each paragraph given in the margin) for this passage reads: “A requirement that certain taxes should be paid in particular paper money might give that paper a certain value even if it was irredeemable”
PDF - http://www.cfeps.org/pubs/wp-pdf/WP35-Forstater.pdf
One of the clearest and earliest references to the idea that a state-issued currency not tied to gold or any other commodity or currency can be managed through taxation and the declaration of public receivability is the now oft-quoted passage from Adam
Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations:
A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money; even though the term of its final discharge and redemption should depend
altogether on the will of the prince. (Smith, 1776, 312)
Cannan’s “sidebar” (his summary of each paragraph given in the margin) for this passage reads: “A requirement that certain taxes should be paid in particular paper money might give that paper a certain value even if it was irredeemable”
PDF - http://www.cfeps.org/pubs/wp-pdf/WP35-Forstater.pdf
