Joe replies to the Modern Mystic’s latest YouTube posting on Chartalism. There are many differences between the Chicago Plan and American Monetary Institute’s proposals for reform, and that of the Neo-chartalists that are rising to the fore of the discussion today.
Joe, one of the question that the modern mystic asked was whether there was any limit to the issuance of chartal money under a fiat system. My answer, is that in theory “No,” but in practice “Yes.” It has to do what is necessary in the way of a productive economy versus as a non-”infrastructure type of activity. The principle comes in as a process of last resort, with the side assumption being that physical infrastructure are of equally important to education and healthcare. Part of the side concerns is to prevent the extreme plummeting of an economy due to various intervening processes transition between technologies, depletion of strategic resources, or other exogenous factors. The expectation that some strata is entitled to a higher level of currency accumulation is probably a more difficult expectation to satisfy, or not. Within the chartalist approach taxes are used to prevent excessive hoarding and accumulation. Coming to some sort of standard here is likely to more than defining infrastructure.