Friday, October 25, 2019

Why Morse's law?

Looking back, finance has always adapted to communication tech, and comm tech has doubled transmission rates about every five years.

So the law distinguishes the natural technology upgrades. Use the law to explain that a tech upgrade for the central banker is completely separated and isolated from whatever current debt problems government has.  Distinct, except that we do the one when we fix the other.

Central banker should be able to talk about the utility of tech without violating their priors, i do not see a contradiction. There is nothing uncentral bank about stable coin, central banks will be with us forever, and a varying market share for a monopsony central bank should be no big deal.

Bankrupt governments are the big deal, a separate issue, I think. And that does involve central banks in the other side of their business.

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