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It seems like false equivalence to state that Central Banks and airlines are the same because they both create an intangible asset. Most nation's central banks
by Shrezzing 3y ago
It seems like false equivalence to state that Central Banks and airlines are the same because they both create an intangible asset.
Most nation's central banks bailed out airlines (if by proxy) just a few days after this was originally posted, which should be a fairly big indicator that airlines are far from akin to Central Banks.
- dermesser 3y agoBut that's only because (unfortunately for the airlines) miles are not a universally accepted currency. Just like some poorer countries needing to be bailed out by the IMF, despite issuing their own currency.
- noslenwerdna 3y agoThe strange way Chuck E Cheese is like a central bank.
- harryposner 3y agoYou joke, and yet [Lucas 1988] uses an amusement park as a toy model to demonstrate how monetary shocks can affect real economic activity. The key difference between this and Chuck E. Cheese, though, is that Chuck E. Cheese is the only merchant that accepts their tokens for any sort of payment. [Lucas 1988] https://home.uchicago.edu/~vlima/courses/econ203/fall01/Lucas_wedo.pdf https://home.uchicago.edu/~vlima/courses/econ203/fall01/Luca...
- johnzim 3y agoTo be fair to the article, the title is "the strange way airlines are actually central banks", implying that it's just in that one way that they are central banks.
- yieldcrv 3y agoanalogies compare dissimilar things with a common attribute it is almost impossible to judge an analogy, despite how common it is to do so