Read it at Angry Bear
I ask not just for clarity, but because (as always), I’m struggling with the relationship between fixed assets and financial assets, between saving and investment.
An MMT Thought Experiment: The Arithmetic and Political Mechanics of Net Financial Assets
by Steve Roth
(h/t Kevin Fathi via email)
If everything were sold, there would be nothing left to buy. Shortage.
ReplyDeleteIf everything were sold, the most that could be obtained in exchange would be all of the money in existence. Inflation.
You can add the market value of all tangible assets, but if they are put up for sale at the same time, their value plummets.
???
Turns out all the action happened on the cross-post at:
ReplyDeletehttp://www.asymptosis.com/an-mmt-thought-experiment-the-arithmetic-and-political-mechanics-of-net-financial-assets.html
Lively discussion in the comments there.
Good find. I promoted it to a new post.
ReplyDelete