Interstellar trade - the interest problem
Posted: Tue Jul 17, 2018 7:32 am
I just thought I'd drop this reference:
Theory of interstellar trade, Paul Krugman, july 1978
Theory of interstellar trade, Paul Krugman, july 1978
This paper extends interplanetary trade theory to an interstellar setting. It
is chiefly concerned with the following question: how should interest charges
on goods in transit be computed when goods travel at close to the speed of
light? This is a problem because the time taken in transit will appear less to
an observer traveling with the goods than to a stationary observer. A solution
is derived from economic theory, and two useless but true theorems are proved.