The Cantillon effect: "the first ones to receive the newly created money see their incomes rise, whereas the last ones to receive the newly created money see their purchasing power decline as consumer price inflation comes about." https://mises.org/library/how-central-banking-increased-inequality … https://en.wikipedia.org/wiki/Richard_Cantillon …
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Replying to @NickSzabo4
So is the solution to give the newly created money to a wider share of society? It would probably turbocharge the CPI but maybe reduce inequality?
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Replying to @Iankov
The best solution is to minimize the creation of new money.
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Replying to @NickSzabo4 @Iankov
Or create a money backed by a crucial finite resource such as land or water.
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Why back
#money with anything at all?4 replies 0 retweets 1 like -
Well I’m talking about the use-value of that asset, not the exchange-value. So those holding such a coin would actually be holding a Title of property ownership which can be used to avoid paying rent.
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The dichotomy breaks down for money because its exchange value is a part of its use value.
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