Money & WorkMental model

New money doesn't enrich everyone equally. It reaches some first.

Richard Cantillon described in the 18th century: newly created money first reaches banks, the state and the wealthy, who spend it before prices rise. Those at the end of the chain, such as employees on fixed wages, already pay higher prices before their income catches up. Money creation therefore redistributes, from the back of the line to the front.

Useful: Under loose monetary policy, ask: who gets the money first, and who pays the prices last?

Source: de.wikipedia.org

Denkmodell Geld Inflation

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