Courtesy of Mish.
Occasionally I get an email from a reader that makes me pause and think. This is one of those times.
Reader Janet Dight writes …
Hello Mish
As per
Ben BernankeMonopoly Official Rules “The bank never goes broke. If the bank runs out of money, the banker may issue as much as may be needed by writing on any ordinary paper.“Janet Dight
Clinical Psychologist
Monopoly Money vs. Bernanke Money
So what’s the difference between “Monopoly Money” and “Bernanke Money”?
The difference is theory vs. practice.
In Monopoly, there is no difference between theory and practice. The rules are the rules and they will be honored and enforced by the players in the game. Money is printed and handed out without any regard as to whether it might be paid back. There is no such thing as excess reserves. Players are always willing to put money to use. If players don’t put money to use, they will be bled to death by other players….
