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This may have been where lacking a central bank could have helped us. One of the advantages of America is that the feds are only supposed to do a few things, s
by mises 7y ago
This may have been where lacking a central bank could have helped us. One of the advantages of America is that the feds are only supposed to do a few things, so states can pick what works best for them. We've been joking about the "California Dollar" for years; maybe it should be separate? Just throwing out ideas. I know there would be consequences, but the proposition is not entirely without merit.
- FiatLuxDave 7y agoI figure that there has to be a way to arbitrage the inflation difference. If there actually were "California Dollars" and "Arkansas Dollars", then you could easily arbitrage the difference between the inflation differential and the change in their rate of exchange (which is currently set to zero by fiat). I've thought about using inflation swaps, but that ends up looking more like a carry trade than an arbitrage, and would require lots of invested capital to get good returns. An arbitrage trade between the two inflationary regions should be more scaleable. If anyone has any ideas, I'd be happy to discuss them via email (see profile).