Information theory question: if you solve a macroeconomic institutional failure by “printing more money”, is there net entropic information loss from the economy? Is resulting extra inflation a way to not just socialize the cost of a failure but to “forget” that it ever happened?
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If socializing the cost means transferring it from one group to another then wouldn't the forgetting mostly be done by the smaller group that transferred it away from themselves?
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Yes, but it can still lose info. If an unknown rich person dumps a lot of toxic but not uniquely identifiable trash anonymously in the public dump, whole town suffers, but some info is arguably lost. Or at least obscured.
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You probably want to talk to about information theory and macroeconomics, as he's uniquely qualified to answer
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Suppose the information about the economic state is in the distribution of wealth. Then that the way the new money is distributed either causes the wealth distribution to diverge from 'true' distribution or increase in absolute entropy. Then yes. See also goodreads.com/book/show/6249
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