This simple fact in no way contradicts chartalism nor credit-concepts of money. It augments them
It is not only perfectly possible for there to be a role for early exchange for understanding the origins of currency systems. It is almost surely necessary.
As MMT has “taken off” its founders and others have begun to preserve and reflect on its history (1). That history will be well covered as it will prove to be central to (genuine) macroeconomic history one day. Leaving that to others, I enjoy thinking about subtle influences, intellectual links and lineages, that go less … Continue reading A (Very) Oblique History of MMT (& other ramblings): Part I
"Show me your model [’s non-banal output useful for policy, prediction, or at least understanding the real world better than verbal/visual methods; granted toy models are useful for teaching some classroom concepts] !!!" It is well known that mainstream DSGE economic modeling is hopelessly flawed (e.g., here, here, here [discussed here], here, here, here, here, here, … Continue reading Do Economists Dream of Electric Gödel Machines?
“IF THERE IS FIRST NO COLLAPSE IN PRODUCTION, NO ELITE MINORITY, AND/OR NO FOREIGN DENOMINATED DEBT, YOU GET NO HYPERINFLATION. JUST SOME OTHER TYPE OF TRANSITION OR STATE FAILURE.”
[Under construction 🚧 ] Mosler, Forstater 1999, A General Analytical Framework for the Analysis of Currencies and Other Commodities (copy from book, awkward format but with diagrams)
"Having read your book, I would include it in that short list of books. If your book is read by a lot of people, it will do a great service."
the very purpose of the "barter story" is precisely to explain why barter cannot lead to the kinds of population and social changes we know happened in ancient societies. That something else necessarily had to happen.
According to Reinhart and Rogoff the danger is both outright (de jure default) and de facto default from inflation and financial repression. However, like their discredited “growth” paper, the “default” argument is also based the on the improper use of statistics.
Let's look into the actual ethnography.
Humphrey's primary ethnographic research for the paper Graeber cites as definitive was based on her research of the Lhomi of the Arun Valley in northern Nepal near the Tibetan border.
Of the Lohmi, Humphrey writes (1985, pp.54-55): "Before the virtual closure of the Tibetan border by the early 1970's which followed the Chinese invasion, the Lhomi engaged in three kinds of barter." These are: