Cash and currency refer to the same thing.  They are also sometimes 
referred to as "high-powered money" or "base money."  It is a credit 
entry into a bank's account with the Fed that I said is "ultimately 
redeemable in cash," not currency redeemable in cash.

I understand that you live in Dallas, TX.  You may contact the Dallas 
Fed for an explanation of how they supply currency or cash in the U.S.  
Otherwise, you might pick up a book, like /Macroeconomics: Private and 
Public Choice/ by Gwartney, Stroup, Sobel, and Machpherson (2011), for 
the explanation.

Best,

James Ahiakpor

John Médaille wrote:
>
>
> On Wed, Dec 19, 2012 at 6:25 PM, James Ahiakpor 
> <[log in to unmask] <mailto:[log in to unmask]>> 
> wrote:
>
>     Some entity supplies the currency in yours and other people's
>     pockets ( the Fed in the US). Even when the Fed merely credits a
>     bank's account with a certain amount, that amount is ultimately
>     redeemable in cash. I would consider my clarification to be rather
>     elementary-- stuff I teach to my introductory macroeconomics
>     students! Have I misunderstood your question?
>     James Ahiakpor
>
>
> I don't know if you have misunderstood my question; I have certainly 
> misunderstood your answer.  You say the Fed supplies the currency 
> which is "ultimately redeemable in cash." Okay. Who supplies the cash?
>
> John
>
>     Sent from my iPhone
>
>     On Dec 19, 2012, at 7:21 AM, John Médaille <[log in to unmask]
>     <mailto:[log in to unmask]>> wrote:
>
>>
>>
>>     On Mon, Dec 17, 2012 at 10:13 PM, James C.W. Ahiakpor
>>     <[log in to unmask]
>>     <mailto:[log in to unmask]>> wrote:
>>
>>
>>
>>         First, I don't recognize what he calls Mill's "'temporary'
>>         deviations from Say's Law" as deviations at all.  The law
>>         says there cannot be an overproduction of all goods at the
>>         same time. Mill is simply pointing out that money (cash or
>>         currency) is also a good (or commodity).  Thus, should there
>>         be an excess demand for money (or insufficient supply) there
>>         would be an excess supply of all other goods and a fall in
>>         the price level.  That's not a deviation. We derive that
>>         conclusion even from the Quantity Theory of Money.
>>
>>     James,
>>
>>     I am somewhat dubious about this "commodity" money. Where does it
>>     come from? I know where commodities like apples or corn or coal
>>     come from, but I know of no money trees, money farms, or money
>>     mines. It seems to me that something that can be created by
>>     punching a few buttons on a computer cannot be considered a
>>     "commodity" and certainly will not have a neat simple and demand
>>     function.
>>
>>     John
>>
>


-- 
James C.W. Ahiakpor, Ph.D.
Professor
Department of Economics
California State University, East Bay
Hayward, CA 94542

(510) 885-3137 Work
(510) 885-7175 Fax (Not Private)