Currency Value, Inflation, and Income Distribution

In an earlier post, I discussed the way in which Modern Monetary Theorists conceptualize the value of the currency. In this context, ‘value of the currency’ refers to its domestic value, not exchange rates. This value is defined in MMT as whatever must be done to obtain a unit of the currency. It can be defined in terms of minimum-wage or ‘simple’ labor time. A minimum wage of $10 would imply that it takes 6 minutes of simple labor time to obtain a dollar, expressed as 6 minutes/dollar or 0.1hrs/dollar. A recent post, which considers the idea further, makes brief mention of the connection between currency value, inflation, and distribution. Here, I want to elaborate on that connection.

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