Sunday, January 27, 2013
My letter to the Wall Street Journal re: Money is the most debauched measurement of value
Re: Bill Gates on the Importance of Good Measurement
The most important measurement device for all members of society is that provided by its money. Money is involved in at least one half of every financial transaction; sometime it is involved in both halves, as in insurance contracts. But what happens when the value of money is debauched? When governments and central banks print money, they invoke the law of diminishing marginal utility, making all money currently extant in the market worth less. But how much less? And what can we do about it, when money is fungible? This is a worldwide crime.