Modern monetary theory - Mitchell and Wray Q3

This is Question 1 in a series of Modern monetary theory interviews - Professors Bill Mitchell and Randy Wray. See billy blog (http://bilbo.economicoutlook.net/blog) for more information on this approach to macroeconomics. You can also get more information from Centre of Full Employment and Equity (http://e1.newcastle.edu.au/coffee).

Questions asked:
The emergence of countries such as the United States, Australia and other countries around the world, modern countries, adopting a fiat currency becomes a significant issue. Can you explain what a fiat currency is?

Category:

Education

Tags:

• Modern monetary theory
• Professor Bill Mitchell
• Professor Randy Wray

[agenthex]

"So why do people accept money in Mises' opinion".

Mises says they're simply a medium for exchange. ie Golds is nothing special, nor is fiat currency.

Questfortruth86 doesn't even understand Mises's book which he recommends to others, though to be fair, it's arguable whether Mises understand it either.

[Zoroastro4bis]

@Questfortruth86 So why do people accept money in Mises' opinion? What gives it value? And what do you mean with "RBD"?

[Questfortruth86]

Nothing has intrinsic value. Before fixed exchange rates there was only gold and perfect money substitutes (so they thought). There is no infinite regression, read Ludwig von Mises' "Theory of Money and Credit." Your RBD mysticism is boring.