Is there an example of an economic system with monetary inflation and deflation mechanisms being crowd-driven?
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the capital markets are that way. As times get better, banks and lenders allow more leverage (monetary expansion) opposite in bad times
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How big is that set? Big enough to be called a crowd? Or an oligarchy with a central banker dictator?
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oh for sure a crowd. This shows up in things like the amount of average debt / ebitda multiples in LBOs and M&A.
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I'm not sure that's a pure example. They still work within forcing function set by central banker.
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the central bank does very little to determine leverage in M&A. This process is gradual and takes years of repeat games.
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same concept could apply to "valuations" in late stage venture which are really increased multiples of revenues being lent to companies
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the preferred equity being issued to companies drives up amounts of money available. More money to buy sweet hoodies and houses.
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Can I, as an average citizen, do something to create or destroy a dollar? I guess personal savings up to a point.
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one way of thinking about it: money gets "converted" to "VC dollars" or "Bank Loans". Then each sub market acts on its own.
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of course there are interrelations, players crossing between, etc but it's the best multi-player example I can think of.

