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Cantillon effect

Glossary · The macro framework Macro

The unequal distribution of newly created money. Those closest to the source (banks, governments, asset holders) benefit first; those farthest from it (wage earners, savers) lose purchasing power. Named after Richard Cantillon, the 18th-century economist who first described it.

The Fundamentalist case for Bitcoin in one term. Fiat creates Cantillon winners and losers; Bitcoin’s fixed issuance schedule doesn’t.

All terms in the glossary · The thesis