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bgritzut  ·  4325 days ago  ·  link  ·    ·  parent  ·  post: The two constants, or, why money has value

Wray describes money in a country as a pyramid.

In "Modern Money Theory", Wray, pg 85.

    Private financial liabilities are not only denominated in the government's money of account, but they also are, ultimately, convertible into the government's currency.

So from that alone, MMT does support the role of money issued by non-government entities. To see why, he continues on pg 86 with:

    We can think of a pyramid of liabilities, with different layers according to the degree of separation from the central bank...The shape of the pyramid is instructive for two reasons. First, there is a hierarchical arrangement whereby liabilities issued by those higher in the pyramid are generally more acceptable...Second, the liabilities at each level typically leverage the liabilities at the higher levels.