How an Economy Grows and Why It Crashes


A   L I F E L I N E   F R O M   A F A R



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how an economy grows

135
A   L I F E L I N E   F R O M   A F A R
Sensing that the possession of the notes would allow his 
island greater access to the transoceanic economy, the 
Sinopian ambassador offered to exchange fi sh caught by his 
citizens for Fish Reserve Notes. 
The senators looked at the Sinopians in disbelief. Then 
they looked at each other in giddy wonder. Could it be 
so easy? Access to fresh fish…in exchange for pieces of 
paper?
Without hesitation, Lindy B. stepped forward and agreed 
to their terms. Usonia would generously open the island’s 
markets to Sinopian fi sh imports…and by the way, when 
could they start unloading the fi sh? 
But before they drew up the paperwork, the Sinopian 
ambassador asked for reassurance that Fish Reserve Notes 
would always have real value. 
“No worries,” said Lindy B. “Anytime you 
want real fi sh for those notes, you just 
mosey up to our bank’s 
fi sh window and 
we’ll be happy to 
give you whatever 
you need. Just 
take a look 
around…does 
it look like 
we’re short 
of fi sh?”


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
136
The treaty was signed and the Sinopian fi sh were delivered.  
In exchange, Lindy handed over a couple of stacks of freshly 
printed notes. Barely containing a chuckle he offered some 
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