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it is obvious that flows are conserved Given that government can issue additional currency, conservation of flow doesn't seem particularly obvious to me.
by kd0amg 15y ago
it is obvious that flows are conserved
Given that government can issue additional currency, conservation of flow doesn't seem particularly obvious to me.
- nhaehnle 15y agoThis is a flows vs. stock thing that I could have made clearer. The additional currency that is issued by the government does not disappear in a black hole (with the possible exception that, technically, dollar bills do get lost in the wash). Instead, it either ultimately flows back to government, or ends up in one of the other sectors. I think the relevant constraints are clear to everybody here, which is why I was not more explicit.