Trinity Bellucci, a convicted murderer and infamous mob boss, finds herself being reborn in a whole new world after being executed by the state. Maybe she'll make some friends- after all, Friendship is Magic.
Page generated in 0.02 seconds
Total duration
903 users online
377,548 hits today, 2,924,228 yesterday
My Little Pony: Friendship is Magic Fanfiction
Designed and coded by knighty & Xaquseg - © 2011-2024
Support us
SubStar
Chat!
Discord
Follow us
Twitter
MLP: Friendship is Magic® - © 2024 Hasbro Inc.®
Fimfiction is in no way affiliated with or endorsed by Hasbro Inc.®
11842047
Tasting history is one of my fav cooking channels, up there with Futurecanoe! :3
Glad to see you're enjoying so far :p
Leonora's "fraud" scheme is actually probably a good idea.
To explain that, I think it's unironically useful to introduce the Quantitative Theory of Money, which is what most people have in mind when they think about the relationship between money supply and inflation (even if it's problematic, it's useful in this case). Simply put, the QTM claims that the amount of money times the velocity of money (essentially, how many times a single piece of physical currency changes hands throughout its useful lifespan) equals the level of prices times the real output of the economy (real gdp):
M*V = P*y
With some mathematics (iirc, apply natural log then derivate with respect to time and approximate) the equation can be re-expressed as
dM/M + dV/V = dP/P + dy/y
dX/X is the rate of increase of X, dP/P is the rate of increase of the level of prices, aka, inflation, dM/M is the rate of increase of the money supply and so on. Representing inflation with π and assuming that the (rate of increase of the) velocity of money is constant:
π = dM/M - dy/y
In words, inflation equals the rate of increase of the amount of money minus the rate of real growth of the economy. Notably then, inflation equals the rate of increase of the amount of money if and only if the economy is growing at a consistently steady rate, and if the level of growth of the economy increases or decreases while money creation stays the same (say the productivity of the gold mines doesn't change) then the economy will actually experience some (mild) deflation or inflation, respectively (according to QTM).
As a way of understanding the former, you may think of economic activity as the demand for money, as in, you need money to be able to do economic transactions and as the number of transactions increases more money is needed to realize them, while the amount of money is its supply. Therefore if economic growth outpaces money creation it could be said that demand is essentially outpacing supply which increases the price or value of money (deflation), and vice versa.
Which means that if the Syndicate's economy has been outpacing the productivity of its gold mines, Leonora's "fraudulent" Fractional Reserve Banking scheme may not only not cause inflation but rather may even boost the growth of the economy even further by compensating for the deflation it's currently experiencing. The former is one of those magical cases where printing money is not only free, it fecking pays dividends to the State while benefiting effectively everyone.
11849161
Dang, you really turned this comment section into an economics class. (I enjoyed it )