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He also touches on a great point: What we want from a monetary system isn’t to make people holding money rich; we want it to facilitate transactions and make t
by vrotaru 15y ago
He also touches on a great point:
What we want from a monetary system isn’t to make people holding money rich; we want it to facilitate transactions and make the economy as a whole rich.
By that logic the best money will be hot potatoes.
- yahelc 15y agoYou're not wrong. In one prison, for example, cans of Mackerel served as an internal currency precisely because they had no inherent value. http://online.wsj.com/article/SB122290720439096481.html http://online.wsj.com/article/SB122290720439096481.html
- vrotaru 15y agoAs long some commodity (X) gains monetary value (demand for X is demand for a medium of exchange) it no longer needs any other value to function. Still I doubt that cans of mackerel have no other use than monetary in prisons. Not many McDonalds around, beside if those were never consumed their supply would be grow continually which will to "mack" inflation. P.S. Have you missed the point about the hot?