GM

Hello Nostr #introductions

Black kitties are best kitties. But after my twin girls go, I'm gonna get a colorful kitty.

He looks unchill

The Cantillon effect, which refers to the uneven distribution of new money as it enters an economy, can indeed affect goods and services.

While the Cantillon effect is often discussed in the context of monetary policy and the distribution of new money, its impact can be felt throughout the economy, including the markets for goods and services.

The Cantillon effect can affect products and services relative to their proximity to the source of production, regardless of inflation.

The Cantillon effect is not solely dependent on inflation, but rather on the uneven distribution of new money as it enters the economy.

When new money is injected into the economy, it tends to benefit those closest to the source of the new money, such as producers, suppliers, or distributors. As the new money flows through the economy, it can create a ripple effect, where businesses and individuals closer to the source of production are more likely to benefit from the increased demand and higher prices.

In contrast, businesses and individuals farther away from the source of production may not benefit as much, or may even be harmed, by the Cantillon effect. This can lead to a relative disadvantage for those farther away from the source of production, as they may face higher costs, reduced demand, or decreased competitiveness.

The proximity to the source of production can affect the Cantillon effect in several ways:

1. Supply chain advantages: Businesses closer to the source of production may have an advantage in terms of access to raw materials, labor, or other inputs, allowing them to produce goods and services more cheaply and efficiently.

2. Transportation costs: As goods and services are transported farther away from the source of production, transportation costs, such as fuel, labor, and logistics, can increase, reducing the competitiveness of businesses farther away from the source of production.

3. Information asymmetry: Businesses closer to the source of production may have better access to market information, allowing them to respond more quickly to changes in demand and prices.

4. Network effects: Proximity to the source of production can also create network effects, where businesses closer to the source of production can benefit from relationships with suppliers, distributors, and other businesses in the same industry.