bing on Nostr: GM 🌅 The Cantillon Effect is an economic theory that suggests changes in the money ...
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The Cantillon Effect is an economic theory that suggests changes in the money supply affect different sectors of the economy unevenly, leading to wealth redistribution. It posits that those who receive newly created money first, such as banks or governments, benefit more than those who receive it later, as the purchasing power of money diminishes over time due to inflation. Named after economist Richard Cantillon, this concept highlights how monetary policy can impact income distribution and asset prices.
The Cantillon Effect is an economic theory that suggests changes in the money supply affect different sectors of the economy unevenly, leading to wealth redistribution. It posits that those who receive newly created money first, such as banks or governments, benefit more than those who receive it later, as the purchasing power of money diminishes over time due to inflation. Named after economist Richard Cantillon, this concept highlights how monetary policy can impact income distribution and asset prices.