Money For the Rest of Us Resilient Wealth in an Era of Infinite Money
Sep 17, 2025
Explore the intriguing relationship between money supply and inflation, highlighting the effects of quantitative easing on wealth inequality. Discover the surprising benefits of deflation and how unorthodox policies, like Nixon's approach in the '70s, have shaped our financial landscape. Learn about demurrage currency and its implications for wealth management, alongside practical tips for building resilience in a world awash in money. This discussion decodes the complexities of modern monetary policy and everyday financial strategies.
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Money Supply Is A Subjective Measure
- M2 is one way to measure money supply but it's subjective and incomplete.
- Money supply includes cash, bank deposits, and retail money market funds and excludes dollars overseas.
When Money Growth Falls Prices Can Decline
- A negative money shock happens when money doesn't grow enough for transactions.
- Late 19th-century gold-standard deflation showed prices fell despite economic growth.
Optimal Policy Could Produce Benign Deflation
- Optimal monetary policy can cause anticipated deflation from productivity gains.
- Excessive money growth instead produces inflation and asset price rises.
