read the reading and then Type Your Answers

Graeber: Myth of Barter

1.    Economists, from Adam Smith to the present, argue that money evolved out of a barter 

economy. How do they arrive at this conclusion? Explain their thinking. Why does this “myth” 

have such staying power?

2.    Graeber argues that acts of barter typically only take place between strangers or enemies. Why? 

What is it about the nature of Barter that makes it an unlikely basis for society?

Wray: Modern Money

3.    According to MMT, why must the state spend 

before 

it can collect taxes or borrow?

4.    According to MMT how does the Federal Government spend? What happens to money when 

taxes are collected?

5.    If taxes do not finance government spending what do taxes do? 

6.    If bonds don’t finance government spending what do bonds do?