korvin_ (korvin_) wrote,
korvin_
korvin_

Monopoly money

HATS off to Paolo Bellomo, a reader from Brooklyn, for this tip on the background to quantitative easing. He points out that the principles of current monetary policy were made clear in the rules of Monopoly. And, indeed, checking the Hasbro website, I found the statement that "The Bank never goes broke. If the Bank runs out of money, the Banker may issue as much more as may be needed by writing on any ordinary paper." Nowadays, the paper is a computer entry but the idea is still the same.

Of course, in Monopoly, the game keeps going until all the players except one are bankrupt or in jail and that can't happen in the real economy.....


http://www.economist.com/blogs/buttonwood/2009/10/monopoly_money.cfm
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