What do we know about the representative consumer? He/she has some cash and is wearing a pair of shoes. No other facts about the consumer are constant across all persons.
So, for the fiat banker, a perfect measure of the consumer propensity to spend is simple, he/she buys a new pair of tennies every six months. Even in San Francisco, where they have naked consumers, they still wear shoes. So when a naked consumer walks into your store for a soda pop, you know that you can price the soda pop in units of tennis shoe, and not confuse the buyer.
The shoe is neutral coinage, everything can be priced in units of shoe. In the environment where the smart card allows multiple types of currencies, each currency can be adjusted to the local price of the average tenny. Thus the store owner prices everything in units of shoe, the smart terminal offer the variety of coinage mutually accepted, units of coinage needed adjusted to represent a pair of size 9 low top jogging shoe.
No comments:
Post a Comment