by Summary:
In “Monopoly”, the bank can “print” money indefinitely, the players get into debt, and the state adds 200 Marks each round. But what if everyone had to pay 200 Marks each round and would suffer negative returns when owning railway stations? Even if “Monopoly” comes from the US, it has long since become a classic German game. And it goes like this: In the ideal case four players buy and sell roads, build houses and hotels and pay each other rent, which depends on the price of the road and the number of real estate. So, the money circulates nicely in the “private sector” or, put differently, among the households. At some point, however, players will run out of money and will no longer be able to make payments. The only thing left is to sell streets, which in the real world is called
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Mike Norman considers the following as important: MMT
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In “Monopoly”, the bank can “print” money indefinitely, the players get into debt, and the state adds 200 Marks each round. But what if everyone had to pay 200 Marks each round and would suffer negative returns when owning railway stations? Even if “Monopoly” comes from the US, it has long since become a classic German game. And it goes like this: In the ideal case four players buy and sell roads, build houses and hotels and pay each other rent, which depends on the price of the road and the number of real estate. So, the money circulates nicely in the “private sector” or, put differently, among the households. At some point, however, players will run out of money and will no longer be able to make payments. The only thing left is to sell streets, which in the real world is called
Topics:
Mike Norman considers the following as important: MMT
This could be interesting, too:
Mike Norman writes Jared Bernstein, total idiot. You have to see this to believe it.
Steve Roth writes MMT and the Wealth of Nations, Revisited
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
Michael Hudson writes International Trade and MMT with Keen, Hudson
In “Monopoly”, the bank can “print” money indefinitely, the players get into debt, and the state adds 200 Marks each round. But what if everyone had to pay 200 Marks each round and would suffer negative returns when owning railway stations?
Even if “Monopoly” comes from the US, it has long since become a classic German game. And it goes like this: In the ideal case four players buy and sell roads, build houses and hotels and pay each other rent, which depends on the price of the road and the number of real estate. So, the money circulates nicely in the “private sector” or, put differently, among the households. At some point, however, players will run out of money and will no longer be able to make payments. The only thing left is to sell streets, which in the real world is called “fire sales”. But with that they rob themselves of future sources of income. The resulting inequality brings the game to an end – when only one player has any money left....econoblog 101
About the rules of the monetary circuit
Dirk Ehnts | Lecturer at Bard College Berlin, research assistant at the Technical University of Chemnitz, and spokesperson of the board of Pufendorf-Gesellschaft eV in Berlin
Crossposted at econinterest under Modern Money Monopoly and in German at Makroskop