Money's Nonneutrality Unleashes Economic Chaos: Wealth Disparities and Unemployment Soar
The article explores how money's structure affects the economy, focusing on its costs and benefits. It discusses issues like misallocations, wealth disparities, and unemployment caused by suboptimal capitalism. Money is seen as essential for a modern economy but can also create unfair competition. The researchers analyze the transaction costs and benefits of money, as well as the production and destruction of liquidity. They suggest that neutral money could improve economic performance by balancing costs and benefits more effectively.