Tuesday, March 20, 2007

Money Market

Bartering food in the way you describe it, yes the child can understand ... but the problem is the one you already mentioned earlier - abstracting the value of goods/items to being represented by paper money that causes the difficulty I think. If I can get over THAT hurdle I then have a chance to discuss the ramifications of printing more money.

Still to a child why not print 1 million dollars more - it's not going to change the economy is it? The quantity is too small. What would printing 1 millions dollars and giving it to poor people really do to the economy? I don't know, but it could make say 10 poor people in Africa have a good life. This is how the child sees it.

I may check out the book you referred to, my one concern with it is that it may be more relevant to US citizens than UK.

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