A price system is an information exchange network. It works best when built on top of a globally-shared neutral monetary medium. The more complex society becomes, the more pressing the need for a neutral monetary standard that doesn’t introduce noise into economic signals. One of the most profound insights in economics is Hayek’s take on the nature of prices. In a short and readable article called “The Use of Knowledge in Society,” Hayek explains why there wouldn’t be any exchange — nor any complex society — without the existence of prices. Prices Are Data Reflecting The Economic RealityA modern economy generates ... (full story)