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A comment on Money Creation in the Modern Economy. Parent comment

Re:Money Creation in the Modern Economy by mikaeluman on Sunday January 15, 2023 @03:26AM (#34387788)
You do realize that central banks decide the time value of money by setting interest rates?

This is the central issue causing the system to behave erratically.

The irony of it all: the only place for socialism in our economies is the monetary system. No surprise it doesn't work well.

[ Parent | on HN ]
Re:Money Creation in the Modern Economy by imtringued on Sunday January 15, 2023 @05:04AM (#34388237)
The central bank only controls the nominal "time value of money". The money holders have a big impact on the real "time value of money". Why haven't you looked there?

Also, the system behaves erratically even when there is no central bank. In fact, the erratic behaviour becomes even more frequent. That would imply that private market participants are a bigger factor in erratic behaviour than central banks.

[ Parent | on HN ]