How an Economy Grows and Why It Crashes

H O W   A N   E C O N O M Y   G R O W S   A N D   W H Y   I T   C R A S H E S
Stuck with stacks of rapidly depreciating notes that he couldn’t 
sell, the Sinopian king realized that events had moved beyond 
his ability to control them. Knowing that his island’s Fish 
Reserve Notes would soon be nearly worthless, he prepared his 
subjects to bite the bullet. At a mass rally he assured them that 
short-term pain would soon give way to long-term gain.
As expected, the value of Sinopians’ savings of Fish Reserve 
Notes turned out to be a mirage. The Sinopian economy 
was pushed into disarray as some businesses closed. But as 
the peasant had predicted, other businesses soon stepped in 
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