Money growth impacts economy by changing trading opportunities and real balances.
The study explores how money works in the economy by looking at how it affects trading and the value of money. By changing the way money is divided and used, the researchers found that money growth can impact how successful trades are and the amount of money people have. They discovered that while money growth can be beneficial for trading, it can also reduce the value of money in the long run. This balance suggests that there is an optimal rate at which money should grow to keep the economy stable.