Friday, May 11, 2018

Dog invents currency, convinces humans to accept it

The problem with fiat currency, backed by nothing but the faith that it is valuable, is that the monetary authority will print more of it.  This leads to an erosion of faith which shows up as inflation.   The dog pictured above has invented his own currency.
Early on in Negro's tenure at the school, he came to be aware of the little store on campus where students gather to buy things on their breaks; sometimes they'd buy him cookies sold there. 
This, evidently, is where the dog first learned about commerce — and decided to try it out himself. 
"He would go to the store and watch the children give money and receive something in exchange," teacher Angela Garcia Bernal told The Dodo. "Then one day, spontaneous, he appeared with a leaf in his mouth, wagging his tail and letting it be known that he wanted a cookie."

The dog has apparently have found a way to credibly commit to not printing money to finance deficit spending. Venezuela could learn something from him.

1 comment: