to settle tax obligations. My reading of this excerpt is that, to the extent that taxes are a significant part of debts which must be settled by the public, the fact that they may be settled with state-issued fiat currency increases its usefulness. In the absence of taxes, they are equally useful as legal tender for the settlement of private debts. However, I note that there is no evidence offered which supports the theory that taxation is a cause of public acceptance of fiat currency. Wray states in the referenced article: "The State defines money as that which it accepts at public pay offices (mainly, in payment of taxes). Taxes create a demand for money, just as our buckaroo tax creates a demand for buckaroos, while spending by the Treasury provides the supply." My question is whether, in the absence of taxes, the public would accept State fiat currency as legal tender for the settlement of all debts, public and private. I believe that the answer is affirmative. There is plenty of evidence for this in economies where taxes are very low or non-existent. Warren Mosler's concern is inflation. There is plenty of evidence that funding public expenditure by expansion of the monetary base causes inflation. However, the alternative to taxes and expansion of the monetary base is public debt. Funding public spending by means of debt becomes a problem when public spending becomes excessive in relation to the size of the total economy. I believe that public sector spending