Information Theory of Money (e02)
Prices are the coordinating force of a free market system. Each individual decision-maker can rely on the prices of goods and services to help with their decision making, as the prices themselves are a distillation of all known market information into a single metric. In other words, the compression of all relevant data is ultimately manifested as price (for the more technie minded, it’s a one-way hash function).
Mar 29, 2020•10 min•Season 1Ep. 2