The Forum > Article Comments > Reserve Bank > Comments
Reserve Bank : Comments
By David Leyonhjelm, published 27/7/2016The Reserve Bank and our politicians should bear in mind what Einstein said: 'If you cannot explain it to a six year old, you don't really understand it.'
- Pages:
-
- 1
- 2
- 3
- Page 4
- 5
- 6
-
- All
"We've just established that your theory of money contradicts your theory of value. "
No we have not. Commodity value isn't what something costs to make (though it's one component of that); it's the value that could be released by destroying it.
"Perhaps you can explain why it would be stupid for the government to assign a lesser monetary value to an item with greater commodity value"
Firstly because it would be an inefficient use of government resources, and secondly because that would create an incentive to destroy it, preventing it from fulfilling the purpose for which it was created.