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Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/3/2007  7:46 PM
Author:  capitanfracassa Number:  200274 of 603841

A short comment here.


What's the difference between issuing money with a negative (real?) interest rate and stamp money that loses one thousandth of its face value weekly?

I think that requires some serious thought. There are probably more, but two are very obvious. The first is the difference between a very clear mechanism that makes plain an alternative monetary regime and requires redesigning the financial infrastructure, and an almost invisible mechanism that gives the impression of continuity and leaves the finanical infrastructure untouched. The second difference is the depreciation schedule, constant amount with stamps, constant rate with inflation (and accelerating rate with a call option).

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