> I'm saying that a limit could be established on how much is too much
That amount is different for every kind of business.
Furthermore, putting cash into the market by force is basically just inflation isn't it?
That amount is different for every kind of business.
Furthermore, putting cash into the market by force is basically just inflation isn't it?
Yes it is, but we could define it algorithmically. Perhaps 5x the median of the last 5 years of operational expense? That would essentally say "you can run with no revenue for 5 years on this pile of cash, that's enough of a rainy day fund."
> Furthermore, putting cash into the market by force is basically just inflation isn't it?
No, you are perhaps thinking about "printing" money. Which is that money is injected into the economy instead of having it being generated by the economy.
This is completely inadequate, and directly hurts the productivity of business (if for no other reason than forcing companies to account for it).
> No, you are perhaps thinking about "printing" money. Which is that money is injected into the economy instead of having it being generated by the economy.
Stagnant cash deflates the currency directly, like bitcoin on hard drives in the dump, or sunken pirate gold.
All USDs are generated by the federal government.
If you have idle time when you can listen to lectures on audio, I highly recommend "Economnics" by The Great Courses[1] (which is currently on sale for $70 bucks for the DVD edition) Chapter 29 covers just this topic and it's fascinating.
[1] https://www.thegreatcourses.com/courses/economics-3rd-editio...