MMTers are obsessed with proving that the value of money is not based upon the subjective whims of the populace but upon the enforceable pronouncements of the Assaultive and Omniscient State. But then yesterday, Tom Hickey made this amazing admission:
"You are confusing nominal value and exchange value. The nominal value is stamped on the face of the coin. This is determined by the issuer. What the exchange value may be at any time is market determined"
So called "nominal value" concerns weights, measures and purity. It has nothing to do with “value” as that term is used today. As usual, MMTers engage in obscurantism. However, this is an amazing admission.
No Austrian denies that governments have mandated the weight, measure and purity of coins over the ages. We deny that governments can impose "exchange value", which is what "value" means. People have subjective values and since we cannot read minds, objective prices resulting from voluntary exchange are the only method for determining and making informed decisions as to the exchange value of zillions of goods and services as valued by 7 billion strangers on this planet. Fiat funny money fatally distorts that calculation process. Keynesians, MMTers and monetarists are oblivious to even the existence of the calculation process, much less its distortion by fiat funny money.