Great story!

Modern Monetary Theory: Real Economics

Once upon a time, a King called Bill ruled a large island called Isla. Isla was rich in all kinds of resources: fisheries, forestry, mines, agriculture and could provide for all the islanders needs.  They bartered their produce, a fish for a coconut for example, between themselves, but gave a percentage of what they made or grew to  King Bill. King Bill was a good king who had the support and loyalty of most of his subjects.

One day King Bill had an idea. He decided to introduce a currency to bring his kingdom into the modern era. He didn’t have very much gold or silver so decided on what we now call the fiat system. He printed many banknotes, and he called the currency the Bill after himself. Kings are like that, even good ones. He issued many coins, and gave samples to all his subjects and told them that the price of a big…

View original post 1,222 more words

Advertisements