So there were two tiers to the economy, similar to what we have today here in the U.S.A. — with, in both cases modest price inflation despite massive monetary expansion (in one form or another). Interesting. I suspect robust international trade and vast opportunities for investment make that possible, so that those who have incomes much higher than the median can do things with their money without unduly disturbing the domestic price structure.

The problem is that even modest inflation eats significantly into the incomes of us peasants over time. If our incomes start to rise, meaningful price inflation gets underway. If our incomes don’t rise, we are forced into debt and eventually go bankrupt on a large collective scale — or perhaps we go to the barricades.

Either way, at a minimum the economy is eventually seriously destabilized from below, even if the upper echelons are still doing well. If nothing else, such a top-heavy economy is especially vulnerable to an external shock such as war or the effects of global warming — or, say, an epidemic.