Stop backing your promissory notes with gold

But I don't.

Wait, if they aren't considered a promise of gold or something else precious, what are they a promise of? I'd assume labour-time, which makes the Bakunin in my brain raise an eyebrow.

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>>2086850
i say let's make "work" our currency

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>>2086850
>Why aren't you paying random people to dig holes all day?

>>2086850
Because tying your monetary supply to a limited commodity causes deflation or massively reduces economic activity. An expanding economy requires elastic money.
>>2086897
>what are they a promise of?
Fiat currency is a tax credit. You can redeem £10 worth of tax obligations with £10 worth of currency. The money is a promise to extinguish tax obligations.
>>2087153
Because that would be preferable to have people do nothing at all. Paying workers an income for a job -any job- keeps aggregate demand high enough to sustain growth and prevent recession.

Keynes a best
Mises a shit

Depends on what we're talking, the Gold standard or the Gold-exchange standard. The gold-exchange standard was harmful to the redemption funds of certain countries financial institutions. The gold standard on the other hand? Very beneficial because of the counter effects to rapid inflation of fiat money it entailed. It also allows for capital injections of credit money instead of fiat money.

God, the early 20th century was so much more exciting than this one with currency. All we have is Bitcoin. Whoop de fucking do

>>2087602
>Fiat currency is a tax credit. You can redeem £10 worth of tax obligations with £10 worth of currency. The money is a promise to extinguish tax obligations.

Oh. Yeah, I figured if it wasn't labour time it was just a promise that the government would enforce X dollars of exchange value to be honored or some shit. But that makes sense. I wasn't prepared to buy that whole "hurr durr not money" thing you get from the gold standard guys.

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>>2086850
Does Keynesian Economics still work today?

Especially in a world where many jobs are becoming automated by machinery.

>>2087633
Keynes influenced a lot of contemporary economic thought.

>>2087633
The New Deal in the US was the only time it was really tried.
WW2 and the Marshall plan was the New Deal on steroids.
Keynes designed an inherently stable and equitable economic model after WW2 but it was rejected by the US for obvious reasons.
He's massively influential but Kalecki predicted the downside to his ideas back in 1943, and what would happen as a reaction (the neoliberal revolution of the 70s and 80s).
After the 2008 GFC countries that did the opposite of what he advocated did considerably worse than countries that followed his advice, see the EU vs the USA.