We hear talk of inflation constantly in financial news and economics textbooks, but rarely do we find the distinction made between price inflation and monetary inflation. Understanding this...
Category: How Money Works
Currency in the United States went through many forms before the ‘fiat’ dollar we have today. In this post, I’ll cover how 7 major events changed the US dollar and led us to the monetary system...
6 Reasons Every Country Uses the US Dollar: Dollarization Explained
While most countries use their own currency within their borders, the US dollar still plays a huge role in the global markets. In this way, the dollar is important for all countries, and important to...
The credit (or debt) theory of money posits that money originated as a system for accounting debts. In reality, it shares a lot with commodity theories of money.
Fiat currencies have the Cantillon Effect, while Bitcoin has the 'Nakamoto Effect' - a term named after Bitcoin's anonymous creator, Satoshi Nakamoto. The question of why we need Bitcoin is a...
Economists correctly believe that in theory and on average, rises in price do not cause a drop in purchasing power. But just like MC Escher's paintings, what works on paper doesn't always pan out in...