[logfromblammo]

He is also increasing the local velocity of money. That 2.5 rupees is re-spent locally, aside from the cost of imported cellulose boards. 4 rupees spent on an import would exit, aside from the shopkeeper markup, and would not return, except as payment for exports.

The velocity of money effectively increases the availability of money. It isn't so much how many coins you have, but how often each one gets spent. If you buy from someone who hires and spends locally, that money is more likely to come back around to you faster than if you buy from someone who spends or saves it somewhere else. And that distance isn't just as the crow flies, but also psychological distance. Thus, as a software writer, I should prefer to buy from companies that spend a lot on software, even if they don't ever pay me directly. It makes more sense for me to shop at Amazon or Wal*Mart than somewhere that figures the sales excise with a desk calculator, and better for me to patronize such a business in my own town than one just like it 500 miles away.

So it's not an apples-to-apples comparison, exactly. But trying to adjust the numbers to gauge the true economic impact of this invention would take about 3 more economists than I currently keep in my back pocket.