am: Gresham’s Legislation is applicable, however it takes on the newest crappy money does not trading during the a great write off when put because the a great MOE. When the stores accepted possibly X Euros and/or exact same X Drachmas for similar an excellent, somebody would likely shell out Drachmas and you may hoard Euros, identical to inside the Gresham’s Law.
Nick E: on your own solution condition (that we concur should be thought about), up coming “Drachmas” are really bonds, unlike currency. On the Warren Mosler Business Cards model (Warren hands aside their team cards during the a conference, however, won’t let some one leave the room unless it hand over a cards) 
his notes would have no really worth in case your authorities accumulates fewer cards inside taxes than just it hand call at pensions.
This isn’t apparent for me if Drachmas manage in reality be used because an enthusiastic MOE. Again, there’s a system externality/ several equilibrium procedure here. In the event that various other somebody make use of them given that MOE, however enjoys an incentive to utilize her or him because the an enthusiastic MOE too. It will require particular huge player to discover the ball rolling. This is when, I think, is the grains away from basic facts about Chartalist idea. The government is a big pro.
Lord understands I’ve disagreed someplace else which have Nick, but won’t a far more ample studying from Nick about this particular area (“cause” off recessions) make more sense? ( unawares tho. )
Is not necessarily the cruel-cycle character from recessions conformed at least? Therefore, Nick’s text would be only shorthand getting “here is in which We have finished is the (just? only beneficial?) invest the fresh new cycle working coverage”?