EZ Pass, Roads, Decisions, Game Theory, and Money

…(an additional road)…can slow down the total network…the addition road doesn’t necessarily help.

John F. Nash, Jr.
Southern Economic Journal
Vol. 69, No. 1 (Jul., 2002), pp. 4-11
Published by: Southern Economic Association
Article Stable URL: http://www.jstor.org/stable/1061553
Money can be recognized as a technological development comparable to the wheel and of similar antiquity. Among the more recent developments in the technology that facilitates transfers of utility (in the sense of game theory) are systems like those of EZ Pass, by means of which vehicles traversing toll bridges or toll highways can pay their toll fees without stopping for the attention of human personnel manning the tollbooths. In this lecture, I present remarks about the history of monetary systems and about issues of comparative quality or merit, along with a specific propagator about how a system or systems of “ideal money” might be established and employed. In addition, I criticize the Keynesian psychology in relation to the history of the influence of Keynesians on the practical characteristics of national currencies.

http://sites.stat.psu.edu/~babu/nash/money.pdf

So let us define “Keynesian “to be descriptive of a “school of thought” that originated at the time of at the time of the devaluations of the pound and the dollar in the early 30’s of the 20th century. Then, more specifically, a “Keynesian ” would favor the existence of a “manipulative” state establishment of central bank and treasury which would continuously seek to achieve “economic welfare” objectives with comparatively little regard for the long term reputation of the national currency and the associated effects of that on the reputation of financial enterprises domestic to the state.
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