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4$\begingroup$ The notional inflation target in a modern developed economy is about 2% per year. For example, the GDP of the USA in 2022 is estimated at about 25 trillion dollars; 2% of that is about 500 billion dollars. The USA has about 330 million inhabitants, so that the inflation target is about 1500 dollars per inhabitant per year. If each inhabitant of the USA produces 100 dollar per month just by existing, this means that the Federal Reserve Bank would need to inject only 100 billion dollars in the economy each year instead of 500 billion. $\endgroup$AlexP– AlexP2022-11-23 22:55:42 +00:00Commented Nov 23, 2022 at 22:55
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2$\begingroup$ ... In other words, it all depends on (1) the rate at which each person produces 100 dollars out of thin air, and (2) what is the general level of prices in the country. For the USA, 100 free dollars per person per month is fine, no problem at all; 100 funny dollars per person per day would be rampant inflation and collapse of the economy. $\endgroup$AlexP– AlexP2022-11-23 23:00:13 +00:00Commented Nov 23, 2022 at 23:00
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3$\begingroup$ "mana, which someone may later use to cast a spell" - so the mana is actually destroyed when spent? $\endgroup$Alexander– Alexander2022-11-23 23:06:47 +00:00Commented Nov 23, 2022 at 23:06
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2$\begingroup$ Analogously: does gold mining affect the stability of gold as a currency? Most of the time, at the scale it happens in reality, no it doesn't. Very occasionally (Spanish gold imports from the new world) it does. But unless you're in a gold rush, very few people generate gold, so it's slightly different when everyone has access to it. $\endgroup$Steve Jessop– Steve Jessop2022-11-24 10:50:57 +00:00Commented Nov 24, 2022 at 10:50
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3$\begingroup$ This concept as laid out is similar to the notion of labour as a unit of exchange. Many people trade labor for money, which is then exchanged for goods and services. Like mana, my labor is a finite but rapidly replenishing resource, and I can comfortably trade about 8 hours of labor per day. $\endgroup$Izzy– Izzy2022-11-25 15:25:46 +00:00Commented Nov 25, 2022 at 15:25
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