Long ago, Milton Friedman explained the "optimal quantity of money,'' which is really the optimal interest rate. It is zero. Peramazero in St. Louis Fed President Jim Bullard's colorful terminology. At interest rates above zero, people hold less cash, and spend time and effort collecting bills early, paying them late, and so on. This is all a waste of time. Also, taxes on rate of return are a bad idea. With all rates of return that much lower, the tax distortion is that much lower. With 0% interest rates, and correspondingly lower inflation, infaltion-induced capital gains taxes vanish.Einstein and Plank had this discussion about the native energy level of then vacuum.w Einstein won, the vacuum has a positive half quant, it hold a bit error.
In currency banking, surprise amortization payments at the short end tend to average to zero, but the rate remains positive to cover inherent vacuum energy, the uncertainty of reading the savings/loan chart in the midst of asynchronous bid/ask events. That uncertainty should be a half bit, by design of the price compression engine.
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