This is an overly simplistic model which happens to have applied very well to Japan but would break down if applied in other economies where inflationary risk is present.
I'm pretty sure there's a joke about there being three types of economies: developed, undeveloped, and Japan.
Cash is useless if the value of the cash goes down by 10,000% and you don't have an inflation adjusted revenue stream. You have to do something with the cash to get enough interest to keep up with inflation.
I'm pretty sure there's a joke about there being three types of economies: developed, undeveloped, and Japan.
Cash is useless if the value of the cash goes down by 10,000% and you don't have an inflation adjusted revenue stream. You have to do something with the cash to get enough interest to keep up with inflation.