This post by Roger Erickson (a contributor to this blog) appeared at Global Economic Intersection.
Here he talks about how a cell creates the energy it needs to survive.
| What PRIMARY internal currency system do amoebas, and all known cells use? A molecule called adenosine. Adenosine can be loaded with energy value by attaching one, two or three phosphate bonds, making adenosine mono-, di- or tri-phosphate, respectively AMP, ADP or ATP. The question most orthodox economists would ask is, "how much adenosine does every cell make?" The answer is, "as much as it needs." What's the mystery? Does any cell "borrow" adenosine? What a silly question. No system borrows its internal bookkeeping methodology. |
The analogy Roger is making is, does a fiat currency system have to "borrow" its own fiat in order to spend?? Of course not, yet that's the thinking.
Now all that's needed is a common analogy for cellular biology and the chain is complete.
ReplyDeleteKidding aside, it is surprising how difficult it is to devise a comprehensive analogy for MMT.