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Saifedean: Why Capitalism is Good and We Don't Need Expanding Money Supply, a Preview of his New Book: Principles of Economics

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The Importance of Money

The state doesn't impose money on the market. When the state tries to impose money, we see enormously disastrous consequences as in many places in the 20th century. What matters about it is its supply is its purchasing power. There's no magic formula that says you need to have $5 per capita or $5,000 per capita in order for the economy to work. Only Keynesians care about the number. You know, only Keynesians might choose more yen because they think, oh, well, that's a higher number. That's got to make me richer. But for everybody who has a brain, no one cares about how much you can get for it.

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