This article is a complete re-write of two existing sections of my manuscript. I was unhappy with the sections, and they were blocking my progress. I decided to throw in the towel, and just cut the text down to the minimum. The text probably needs work, but it is no longer going to be black hole for revisions.
The beauty of the Cantillon Effect is that it gives a simple relationship between inflation and financial asset markets. Allegedly, people who somehow get “new money” first rush out and buy financial assets, driving up their price. This then leaks out into consumer prices. The problem with simple rules related to financial asset prices is: why are the people who discovered them all getting rich using them?