Base Money and Fiduciary Money
DeFi is a cursed global game of cooties from men with no integrity.
In my last article, I examined the Real Bills Doctrine and how it does not work unless newly created purchasing media is subordinated to a hard secure commodity like gold or bitcoin.
Standing alone the RBD links one nominal variable, the money stock, with another nominal variable, the dollar volume of the money stock. In doing so RBD fails to distinguish nominal output from real output creating a spiraling loop of inflation or deflation. This phenomenon is manifest in The Crypto World.