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Surely there must be a kind of duality between inflation and deflation in context of the total money supply and the individual unit of money that is deeper than
by kitsune_ 13y ago
Surely there must be a kind of duality between inflation and deflation in context of the total money supply and the individual unit of money that is deeper than commonly taught?
Couldn't a a fixed-money-supply economy and a flexible-money-supply economy be unified in a single mathematical and theoretical framework? This must surely be possible, but in that regard "unit of exchange / money" would have probably discarded in favor of another thing?
- asgard1024 13y agoTry Steve Keen and his work. He modeled both fixed money and flexible money supply in his dynamical models of finance. You can even download a computer program "Minsky" and try the models yourself. Edit: He is also a proponent of "endogenous theory of money", which basically says that money can be easily created within the system through debt. In essence, "fiat money" is a fundamental property of monetary systems, and not something imposed by governments.