4 ms·
It was the old definition. It made more sense when the money supply was defined as a the pool of circulating money. Now that the supply is debt based and abstra
by tmn 3y ago
It was the old definition. It made more sense when the money supply was defined as a the pool of circulating money. Now that the supply is debt based and abstract, it became non pragmatic to keep referencing it.
- throw0101a 3y ago> Now that the supply is debt based and abstract, it became non pragmatic to keep referencing it. Supply has been debt-based (or rather, credit-based) for decades, if not at least a century. It was wrong for decades, and yet folks like Milton Friedman insisted on using this definition: * https://en.wikipedia.org/wiki/Monetarism https://en.wikipedia.org/wiki/Monetarism
- tmn 3y agoAgree. I’m looking back much farther.