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MMT suggests that ability for a government to print money is a critical power for the ability of government to have impact and temper economic cycles
usually, on the federal government has the ability to print money
what if...
- any government (~ entity that collects taxes) would issue its own currency, have a central bank, and collect taxes in that currency
- ie. all regional and municipal governments
- ie. "Ontario-coin", "Toronto-coin"
even if, say, the City of Toronto minted its own coin, why would anyone bother using it?
- because it is required to pay taxes with
- anyone owning real-estate in Toronto would need to pay money
where would one get Toronto coins to pay taxes with?
- most would likely come via mortgages on Toronto properties from banks, who get it directly from the Toronto Central Bank (which "prints" it into existence)
- also, the City would pay it's expenditures in Toronto-coin (salaries, contractors, etc.)
in theory, other merchants would grow to accept it as well
- potentially with auto-conversion of currencies (like how you can pay with a foreign-currency credit card anywhere in the world)
- or, it would become common to have multi-currency accounts (like Wise)
major downside is that most individuals wouldn't want to deal with the complexity of multiple currencies (b/c, say, a Toronto resident would receive, hold and pay some mix of Toronto-, Ontario-, and Canada- coins)
but, the finance sector would love this
- establishing "efficient" conversion rates through arbitrage

https://en.wikipedia.org/wiki/Local_currency

2023-10-19

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