09-03-2007, 01:18 AM
Quote:Not overuse, so much, then, but rather the "Closing my gates will benefit me, at the expense of others (As money can still flow in, but not flow out), but if everyone else closes their gates, then we'll all lose" problem of closed economies.
For a given amount of products, if money is flowing in and not out, then all you have is inflation. If you're buying products with them from outside, then money is flowing out. If you could have increased production locally with the money, then what you had was a shortage of cash, and the sensible thing to do would be to save money anyway
Even on a local scale, closed economies only seem like a good idea. They aren't really.
-Jester