causal in the acceptance of state money. Everyone in the state that pays taxes, which is just about everyone, needs to obtain state money to do so if the state accepts only its own liabilities at its payment offices. Other factors involved in acceptance of money as a medium of exchange are not causal in that they do not create a necessity for its acceptance, only a convenience. What happens according to the Chartalist view is that the necessity to obtain state money for the payment of taxes gets the game going and other factors kick in to support the use of state money as the relatively exclusive medium of exchange. For example, casinos may require the use their chips as monetary tokens instead of the currency for which the chips are exchangeable on exiting. Another element of this theory which seems questionable to me is the following: reclaiming fiat currency via taxation is essential to maintaining its value in exchange. What is the evidence for this assertion? Clearly, an excess of fiat currency depresses its value: supply exceeds demand. Warren Mosler asserts that taxation is necessary for dampening aggregate demand. It seems to me that taxation may be sufficient for dampening aggregate demand but that it is not necessary for doing so. The alternative is to limit the extent of fiat currency issued. In this, I think that perhaps Warren Mosler and I agree. There is plenty of evidence supporting the theory that an excess of fiat currency depresses