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Theory of Interest and Prices in Paper Currency Part II (Mechanics)





In this part, we discuss stocks vs. flows, how prices are formed in a market, a broad concept of arbitrage, spreads, and how money comes into and goes out of existence.

 
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Theory of Interest and Prices in Paper Currency Part I (Linearity)





How does it really work under irredeemable paper? It's more complicated than under gold.

 
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