#TIL The Cantillon Effect
“Expansionary monetary policy constitutes a transfer of purchasing power away from those who hold old money to whoever gets new money. This is known as the Cantillon Effect, after 18th Century economist Richard Cantillon who first proposed it.Aug 7, 2012.”
From here: India’s Currency Cancellation: Seigniorage and Cantillon Effects on how the demonetization leads to a Cantillon Effect in favour of those who have bank accounts / patronage and are able to access new currency notes quickly.
