Nostr Web Client

given I primarily use the bird app for shitposting (and now apparently marketing, fml) whereas nostr is where real work gets done and real learning happens, I’d be very happy to discuss Capital In The 21st Century if anybody has any questions.

AMA!

Lisander 2y ago

Does stock/flow dynamics change if the good being produced is a consumable resource (i.e.iron) or a business interest vs. a monetary good (i.e. BTC)? I keep thinking that if the stock/flow of the monetary good is priced in its own denomination (#BTC and #BTC/time) what you get is a stock becomes something akin to 1BTC is 1BTC and the flow would represent BTC issuance inflation rate which eventually goes to zero.

Also if we stick with $ denominated stock/flow valuations, how do we calculate in inflation of the measuring asset ($ in this case)?

Thanks

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Discussion

allen 2y ago

I think you might be thinking about this too literally. there is no such intrinsic property as either “stock” or “flow” - it’s primarily about how to interpret financial statements and, importantly, noticing that the balance sheet and the income statement have different dimensions, and that these dimensions reflect different causal states.

also, to be clear, this has next to nothing to do with the asinine “stock to flow” concept. this is a framework from dynamical systems applied to finance as a helpful heuristic.