With the introduction of this international “gold money”, there is now a new stage set or game created. Governments now have to respond to the fact that citizens can CHOOSE, and so the markets start to (let’s say) “hyper-reflect the quality of our money.
Please elaborate. We can already exchange currencies or even use cryptocurrencies. Governments already respond to the fact that citizens can choose what currency to keep their assets in and what currency to trade in internationally. This is true without a “gold money”, and I fail to see how the presence of a “gold money” would improve the picture. Or in another framing, if Nash is right, then we are already evolving toward “gold money” as governments have to respond to these incentives. However, the technical definition of a “limit” that Nash is using only implies that the goal will be reached at the “limit” of time, meaning, we will never actually reach that ideal state.
Gold money means that the VALUE is relatively stable (relative to other options) in comparison to Ideal Money (which is money comparable to an optimally chosen basket of stable global commodity prices). We have never had that option, other than gold that Nash explains failed for reasons, and is not a good idea to re-instate for reasons.
Also the governments heavily restrict our ability seek better alternatives.
Because it leaves the market participants with no basis for valuation. Every time they find one there is pressure for self interested actors to corrupt it. And also it doesn’t matter, if I don’t give an argument then the suggestion is still that competition will tend the currencies towards ideal.
Which is it? Competition evolves currency toward an ideal, or competition provides pressure driving self-interested actors toward corrupting currencies?
Please elaborate. We can already exchange currencies or even use cryptocurrencies. Governments already respond to the fact that citizens can choose what currency to keep their assets in and what currency to trade in internationally. This is true without a “gold money”, and I fail to see how the presence of a “gold money” would improve the picture. Or in another framing, if Nash is right, then we are already evolving toward “gold money” as governments have to respond to these incentives. However, the technical definition of a “limit” that Nash is using only implies that the goal will be reached at the “limit” of time, meaning, we will never actually reach that ideal state.
Gold money means that the VALUE is relatively stable (relative to other options) in comparison to Ideal Money (which is money comparable to an optimally chosen basket of stable global commodity prices). We have never had that option, other than gold that Nash explains failed for reasons, and is not a good idea to re-instate for reasons.
Also the governments heavily restrict our ability seek better alternatives.
Please continue. Why is competition between international currencies not sufficient to emanetize the eschaton?
Because it leaves the market participants with no basis for valuation. Every time they find one there is pressure for self interested actors to corrupt it. And also it doesn’t matter, if I don’t give an argument then the suggestion is still that competition will tend the currencies towards ideal.
Which is it? Competition evolves currency toward an ideal, or competition provides pressure driving self-interested actors toward corrupting currencies?