3min chapter

The "What is Money?" Show cover image

The Psychology of Totalitarianism with Mattias Desmet (WiM201)

The "What is Money?" Show

CHAPTER

'Masformation' Is a Strange Phenomenon

"It's very hard to explain that, extremely hard to explain," he says of the phenomenon. "Just like all complex dynamical phenomena, you can never understand it." The price signal in a market place is telling us what to do, tells us what consumers want and when we print money, we distort thatPrice signals are usually related to economics or private property rights. But if a central bank is just printing money, then that price signal could just as easily say, oh, deno, the central bank policy has changed,. although nobody's wants have actually changed.

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