Should you pay your smart investment advisor?

Came across following interesting quote by Bob Lucas Jr. It is an apt comment on the costly actions people are forced to take because of inflation!

In a monetary economy, it is in everyone’s private interest to try to get someone else to hold non-interest-bearing cash and reserves. But someone has to hold it all, so all of these efforts must simply cancel out. All of us spend several hours per year in this effort, and we employ thousands of talented and highly trained people to help us. These personhours are simply thrown away, wasted on a task that should not have to be performed at all.
Robert E. Lucas, Jr., 2000

Ref:

LUCAS, R. E., JR., “Inflation andWelfare,” Econometrica 68 (2000), 247–74.

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Filed under macroeconomics

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