March 30, 2012

LARRY SUMMERS AND THE TECHNOLOGY OF MONEY. “The penetration of e-commerce and the movement toward IT platforms of commerce is going to have a larger and larger impact on the real economy, simply because high percentage rates from a substantial base make more difference than high percentage rates from a very low base. Amazon, and the fraction of all purchasing that’s taking place online, is having a growing impact. We’re also seeing all kinds of industries that nobody conceptualized even a few years ago, built around social networking in one way or another, of which online games are only one example. And we’re seeing—this gets ahead of us slightly—the processes of commerce changing fundamentally when people are able to store value on their cell phones, when people are able to take payments digitally with minimal friction or red tape.”

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