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All economy is like infinite Hilbert Hotel. You create money out of thin air to get work done in real physical world to build products and services which will i
by conmod278 2mo ago
All economy is like infinite Hilbert Hotel. You create money out of thin air to get work done in real physical world to build products and services which will in future justify the past creation of money. It's like pulling yourself forward into the "desired" future with the help of newly minted money rope. Think about it this way, most of the money in the economy just sits there in bank accounts waiting to be deployed in future. So newly minted money in a way rearranges the physical world making the future world more suitable to justify past money supply increases. In case of hilbert hotel, we make room for the new guest by simply shifting everybody by n -> n+1. The settlement never arrives because the hotel in infinite, we call always do this.
- rfff2 2mo agoYou're kinda right. But underestanding isn't entirely complete. Money is created upon the issuance of debt.