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Because a market is a computer that takes time to discover what the viable niches are, and when you change some macro-variable (such as the purchasing power represented by a unit of currency), the model of what those niches has to get recomputed. The analogy to biological evolution would be changing the value of a joule. (I think)
U's avatar
U 1 year ago
interesting thought โ€” I guess it's the same for all macro economy top down decisions: Taxes, rate hikes, new legislation and so forth... the bag is shaken and calculated information lost.
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