Spherical cow model assuming everyone is honest and had steady income before this.
Everybody just issues bonds to get paid what they used to make, and the government buys and tosses them. The inflation socializes the cost evenly.
Where does this breaks if honesty holds?
Conversation
Forming a hypothesis that this sort of crisis is only a problem to the extent people try to profiteer from it. It’s a giant prisoner’s dilemma. Profiteering = defection.
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Trying to falsify it, the next breakpoint is courage. People change spending habits to conserve cash. That’s also a prisoner’s dilemma. If nobody does it, the inflation literally cancels out. You pay purely with wait times for backlogged work which piled up.
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