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I'm no tech exec, but this seems fine to me. If your government increases the money supply, ceteris paribus the demand curve (for every product) will shift righ
by Y_Y 2y ago
I'm no tech exec, but this seems fine to me. If your government increases the money supply, ceteris paribus the demand curve (for every product) will shift right. At that point the tech exec can raise their price along with their competitors for an easy win. They're not forced to, but it's monetary policy that made it possible.
- cheschire 2y agoChicken or the egg? You’ve just pointed out a correlation but I’ve yet to see actual causation here.
- Y_Y 2y agoOh sure, I didn't mean I was giving the full explanation, only that I felt the idea wasn't so ridiculous.
- redserk 2y agoNo need to jump into this ring of assumptions built onto assumptions (plus, what pre-IPO company is reading an Econ 101 textbook on Macroeconomics…?) As you near an IPO, you’d want to make your business look like it’s quite profitable to prevent the share price from nosediving on Day 1.
- Y_Y 2y agoYou're right of course. I guess I was trying to steelman the hypothetical exec's position as not totally unfounded or unreasonable, not give the final verdict.