00:00Do you think trade will ever be done between different galaxies?
00:03Well, today, NASA suggests that the U.S. is in a space race with China
00:07out of concern that China may want to take possession of the moon.
00:10So, in light of that news, let's assume it's a lot less ridiculous
00:13to ask the question about intergalactic trade today than it was in 1978
00:17when American economist Paul Krugman tried to answer the question
00:20how might interest rates be calculated for goods in transit
00:23when traveling close to the speed of light?
00:25To answer this, Krugman puts forward the interplanetary trade theory,
00:28which suggests that interest costs based on time in transit
00:32should not be computed in accordance with the clock on board the traveling spacecraft
00:36or the one with the waiting recipient, as time would appear to move faster
00:41for the party traveling with the goods than the stationary observer.
00:44Instead, interest rates should be calculated using clocks housed in third party bases,
00:48making space voyages an investment project
00:51where the interest rate is derived based on the planet's destination.
00:54So after hearing all of this.
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