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Why can't we just quit, leave the quantity of money static and and let the market decide the rates?

• imtringued 4y ago
  You can, but the market will reach negative interest rates and then everyone starts hoarding cash because the returns in the real economy are lower than the returns in the financial economy. When people abandon the real economy there will be unemployment and eventually countries go to war or alternatively think of peaceful ways to pointlessly employ their people. Pointless savings lead to pointless investments which lead to pointless jobs. https://m.youtube.com/watch?v=j5l_Oeg6kMo https://m.youtube.com/watch?v=j5l_Oeg6kMo
  • fiatjaf 4y ago
    You can't in this game, that was my point. In the real world of course none of these absurdities you mention would happen.