Thursday , March 28 2024
Home / Mike Norman Economics / About the rules of the monetary circuit — Dirk Ehnts

About the rules of the monetary circuit — Dirk Ehnts

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

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

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

Matias Vernengo writes Modern Money Theory in the Tropics: A Reply to Agustin Mario

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
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *