Re:Binance founder 'CZ' leaves prison on Friday–along with h...
by s1artibartfast on Friday September 27, 2024 @04:41PM
(#41675331)
I think that still runs afoul of the "uninvolved 3rd party" part of the definition.
Two actors can both generate value from a transaction due to a difference between price and their respective utility value for what is traded. This producer and consumer surplus is explicitly distinct from externalities.
If there is a currency deal between the US and Argentina, the consequences to those countries are not an externality. However, if this deal produces a 2nd order change in the Chinese RMB, some would call that an externality, although I would call it a consequence (because externality implies mispricing)
Of course it is. Joining a currency union carries costs.
Broadly speaking, you're correct: the term has ambiguous meaning. My point is that isn't something new, but an element that has always been with the term.