Wednesday, August 26, 2009

The Power of Money: Round Two

Backing a currency with electricity.

There's an addition reason why electricity is an ideal backing for a currency. Power consumption is strongly correlated with economic activity, so in a growing economy, as demand for power rises, the value of the currency would increase. In a recession, it would decrease. It has built-in monetary policy.

0 Comments:

Post a Comment

<< Home