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So if I take a truckload of 100$ bills, a bottle of gin and a can of gasoline, drive into the dessert, out of sight of the authorities, and burn the entire lot,
by hn0 8y ago
So if I take a truckload of 100$ bills, a bottle of gin and a can of gasoline, drive into the dessert, out of sight of the authorities, and burn the entire lot, then the next night all retailers will have a vision which tells them to lower their average prices by 0.573%?
- BoiledCabbage 8y agoIs this comment sarcastic? I can't tell. The money supply affects prices. It's basic econ.
- vageli 8y agoHow fast does a change made by a private actor to the money supply propagate? Surely not instantaneously?
- marcosdumay 8y agoBy the time you fill your truck with those $100 bills, the prices will have already adjusted. If you decide to not burn them, but spend them quickly, the prices will adjust again.
- marvin 8y agoIt's a hypothetical point; a small reduction in money supply will affect prices far less than the uncertainty or random fluctuation in the measurement of prices.