How an Economy Grows and Why It Crashes


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how an economy grows

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
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Greenfi n warned that without the stimulus that is provided 
by a steady dose of fi shfl ation, people would lose their 
appetites, and stop demanding fi sh, and the island economy 
would contract. He further theorized that a fi shfl ation level 
of only one-half of a fi sh belly per year would be optimal. 
Fishfl ation, he argued, was essential to an expanding 
economy!
“Nice fi guring, Ally. You could talk a shark out of a fi sh 
barrel,” said Franky. But nobody thought of pointing a fi nger 
at government, the real cause of fi shfl ation!
With a blank check to do whatever it wanted, the government 
continued to curry favor with citizens by issuing more and 
more Fish Reserve Notes. As it did, the offi cial fi sh continued 
to shrink in size and the fi sh became less and less valuable. 
Wages and prices, therefore, had to go up. Although in some 
years the fi shfl ation was barely noticeable because of offsetting 



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