The incentive picture doesn’t include the stick, the negative incentive, tho we all like more positive carrots. Regulations, and laws & business norms, include lots of penalties, which are both microeconomic incentive structures, and sticks.
Great new point about how a larger debt is a bit anti-inflationary due to 1% inflation reducing a higher amount of debt value. 2.5% for a Japan with 250% debt/gdp ratio.
The incentive picture doesn’t include the stick, the negative incentive, tho we all like more positive carrots. Regulations, and laws & business norms, include lots of penalties, which are both microeconomic incentive structures, and sticks.
Great new point about how a larger debt is a bit anti-inflationary due to 1% inflation reducing a higher amount of debt value. 2.5% for a Japan with 250% debt/gdp ratio.
Typo: shrinkflation, not shrik.