An otherwise sound economy with no price distortions. The Monopoly banker enter the short term lending market, slightly undercutting an otherwise sound banking network; reducing rates. He can do this for a while, systematically lower prices across the consumer goods. But the adiabatic cycle is a cycle, he has to stop and reverse sometime to let the banking system recover.
Can the banker get work out of the deal?
Not unless he has energy to put into the process. If he has bright economists who are slightly idle, and these economists can use their skills to help find pricing advantages over the economy, then yes, that is work out of the economy. If his economists are good, and the bank has excess efficiency, then the fiat banker can move money in and out of the vault, adiabatically; on each cycle the economists will find and communicate pricing advantages that are Pareto efficient.
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