2 ms·
It does not. It requires only that they have an unbounded supply of money. The price of an asset can be bid up indefinitely as long as there are at least two
by fredkbloggs 11y ago
It does not. It requires only that they have an unbounded supply of money. The price of an asset can be bid up indefinitely as long as there are at least two traders with unlimited access to money.
- valarauca1 11y agoSo instead of an inifite number of consumers it requires 2x an inifite supply of money. How is this more likely? If you have inifite of something it by defination has no value to you.
- fredkbloggs 11y agoYou don't. The way that the monetary system works in all developed economies today is that you can borrow money into existence in order to purchase an asset. The supply is not infinite, but it is always possible to create more. That's reality, not a hypothetical. The hypothetical is that this could continue without limit, regardless of asset prices. Thus far, in reality, that growth has always been restricted at some point. There is no conceptual requirement that it be so.