There is a Planet Money (podcast) episode about this. It’s a fairly new economic theory, but actual PhD level economists have said this. Government prints money, and to bring down inflation they need to get taxes to reduce the amount of money in circulation, to control inflation. The epidsode was in the 2019 timeframe, I think.
Something that absolutely works in the abstract, but kinda hard to fit into my current model of reality.
You have to look at it from the perspective of mathematics, like systems control theory and balance / equilibriums. Money flow is comparable to energy flow. Mathematical equivalence principles allows for multiple descriptions of the same phenomenon because externally visible every system behavior can be implemented in many different ways.
So even if that’s not how the underlying implementation looks like, you can switch the system to work like that without changing anything about how you interact with it. And that allows you to analyze the system in different ways that might not work in the current system
I’m a mathematician, so yes; I can confirm. 😂 I was trying to avoid that comparison, but I did use the same techniques I use to compare algebras when my sister and I stumbled on this way of thinking about the economy. I’ve never heard of systems control theory, though.
There is a Planet Money (podcast) episode about this. It’s a fairly new economic theory, but actual PhD level economists have said this. Government prints money, and to bring down inflation they need to get taxes to reduce the amount of money in circulation, to control inflation. The epidsode was in the 2019 timeframe, I think.
Something that absolutely works in the abstract, but kinda hard to fit into my current model of reality.
You have to look at it from the perspective of mathematics, like systems control theory and balance / equilibriums. Money flow is comparable to energy flow. Mathematical equivalence principles allows for multiple descriptions of the same phenomenon because externally visible every system behavior can be implemented in many different ways.
So even if that’s not how the underlying implementation looks like, you can switch the system to work like that without changing anything about how you interact with it. And that allows you to analyze the system in different ways that might not work in the current system
I’m a mathematician, so yes; I can confirm. 😂 I was trying to avoid that comparison, but I did use the same techniques I use to compare algebras when my sister and I stumbled on this way of thinking about the economy. I’ve never heard of systems control theory, though.