Vox Day is having the same kind of problem with Robert Wenzel and the Economic Policy Journal that I had just about one year ago: it appears that Wenzel and his troop are fundamentally confused about the nature of money, which is why they have been so consistently wrong in anticipating “inflation” due to “money printing by the Fed”, as if currency was the only, or indeed even the primary, form of money.
I think the questions involved are just too abstract for most people, even most very bright people. Money is such a tangible, useful mundane and everyday thing it’s hard to believe that understanding its roots and origins is an intellectual exercise comparable to medieval metaphysics.
And yet this is true. Read this if you don’t believe me (pdf.).
I was looking at that pdf article in connection with some correspondence I was having with Steve Keen – also on the blogroll – who I had read somewhere was a “chartalist“, which is a branch of economics that, well….I don’t know. I mean wikipedia has a description, but I’m not quite sure what it means and I don’t know if anyone else is either.