Showing posts with label !!!. Show all posts
Showing posts with label !!!. Show all posts

Saturday, August 1, 2009

On Money

...and plenty of money, wrapped up in a five pound note!

I'm not a "gold standard" guy. But sometimes it's useful to think in terms of money-as-gold when thinking about the economy. So let's say the U.S. base money is gold. M0 is gold.

Then M1 money is gold in circulation, and I suppose gold certificates, and checking-account money. And after that, M2, M3, whatever, we have "debt-backed obligations." Okay? So let's start up this economic model and let it run.