the central bank does very little to determine leverage in M&A. This process is gradual and takes years of repeat games.
Conversation
Replying to
same concept could apply to "valuations" in late stage venture which are really increased multiples of revenues being lent to companies
2
Replying to
You've drifted quite far away from the monetary base in your examples.
1
1
Replying to
yeah it isn't really the equivalent of monetary base of course. Have to stylize the concepts to define boundaries and players.
1
Replying to
Looking for a non-stylized, bare-metal example. In prison for eg, you can smoke cigarettes to deflate.
1
Replying to
forum karma currencies are the closest I know of, since you can mint with likes/upvotes/downvotes
1
1
Replying to
the leveraged loan market is actually decent because these securities come in and out of existence through cycles.
1
1
Replying to
players literally create them and then destroy them as cycles happen. But I hear you they are part of the overall money system.
2
Replying to
Properties of systems with a finite vs. infinite game boundary are qualitatively different. Base monetary sys = ∞ game boundary
Replying to
hard to think of real world examples because of fungibility of securities / currencies. Oil system could be but convertible to dollars.

