Why does the state have a monopoly on money?
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Why does the state have a monopoly on money?
1–10 of 29 posts
Re: Why does the state have a monopoly on money?
#2Weird article, no mention of tax or convenience.
Why does the government have a monopoly on time?!
Re: Why does the state have a monopoly on money?
#3[deleted]
Re: Why does the state have a monopoly on money?
#4[deleted]
Re: Why does the state have a monopoly on money?
#5Because we don't want people like Giancarlo Devasini, Alex Machinsky, Sam Bankrun-Fraud, Vitalik Buterin, Changpeng Zhao, Saint Saylor and others to govern our money. That's why a lesser evil is used - the state.
Re: Why does the state have a monopoly on money?
#6Technically, the state does not have the monopoly on money. The majority of the money supply is created by commercial banks through credit. But the commercial banks are so strictly regulated through capital requirements that the de facto decision about what purposes the banks are allowed to print money for is under centralized control. The ECB even thinks about using capital requirement rules to nudge banks towards green investments, which would be a departure from their mandate of monetary stability.
Re: Why does the state have a monopoly on money?
#7Because we don't want people like Giancarlo Devasini, Alex Machinsky, Sam Bankrun-Fraud, Vitalik Buterin, Changpeng Zhao, Saint Saylor and others to govern our money. That's why a lesser evil is used - the state.
Not just crypto too. Back in the day banks issuing their own gold promise notes didn’t end well because once you can promise you can make false promises.
The government can also do that and some countries currencies have collapsed but in general it is fairly solid! Inflation aside.
Re: Why does the state have a monopoly on money?
#8> The main point of that previous post is that although economists tend to dislike monopoly and extol the virtues of competition, there is surprisingly little criticism of central banks among these same economists.
I think professional economist don't have "likes" or "dislikes". Also this statement doesn't seem correct in another way. I think economists try to understand what setting yields the most wealth. If a monopoly yields more wealth than competition, then, economists will recommend a monopoly.
For example, the metric system is similar to a monopoly. It doesn't make sense to have multiple competing systems here.
Same with a currency as it's a unit of accounting. Having multiple currencies would have higher transaction costs because people would have to convert back and forth daily for comparison and making purchases.
There's also the perspective from MMT, where money is a license to pay your taxes. So having multiple ways of paying your taxes doesn't make sense in this view either.
Re: Why does the state have a monopoly on money?
#9> When presented in that light, it is not surprising that it would be treated as treasonous.
And if presented in a different light, it'd be surprising. But the more imporant question is why would you need to present anything based on that or another theory instead of validating it with data from those who actually make those rules and categorize it as treason?
Re: Why does the state have a monopoly on money?
#10Because we don't want people like Giancarlo Devasini, Alex Machinsky, Sam Bankrun-Fraud, Vitalik Buterin, Changpeng Zhao, Saint Saylor and others to govern our money. That's why a lesser evil is used - the state.
Not just crypto too. Back in the day banks issuing their own gold promise notes didn’t end well because once you can promise you can make false promises. The government can also do that and some countries currencies have collapsed but in general it is fairly solid! Inflation aside.
"it's fairly solid aside from situations when it's not"