Let me now examine the characteristics of the equilibrium envisaged in Hayek’s proposal.7 The marginal costs of producing and issuing a currency (in the form of notes and coin) are rather low (close to zero).8 In the context of the type of competition envisaged by Hayek, the nominal rate of interest would be driven (close) to zero.
Top 20 per cent of the population receives almost 50 per cent of the national income. So they receive higher incomes than the bottom 20 per cent who get only 7 per cent of the national income.