Post
Topic
Board Economics
Re: How come the bank failure destroy the wealth???
by
johnyj
on 09/10/2011, 19:17:59 UTC
Another thought related to saving:

One gold miner found a small piece of gold, he use that piece of gold to exchange for several bag of bread from a farmer, and he eat those bread for one week

After one week, farmer still holds the gold, but there is no bread, since farmer think that he could use that gold to buy same amount of bread  Grin

This means: Farmer need some incentive to continously produce the bread, otherwise there will be inflation  Cool