... positions and, hence, on short-term interest rates This interdependence, and bonds government s then, is not de,facto evidence of a “financing” role for taxes On the contrary, taxes can be viewed ... demand for money, not to finance the government s spending Similarly, bonds need not be issued in order to allow the government current taxation How, after all, could money (I-PM) before the government ... which to pay taxes Thus, taxes can be conceived as the means by which the government from private to public domain the government s directs real resources If this theory is accepted, taxes are used...