Thus, in an economy that has 100 goods, for example, there would be a total of 4950 prices or “exchange rates” between one good and the others.
Actually, this can be avoided by making the prices virtual and having a liquidity pool that would automatically allow to calculate prices. Liquidity pools can almost surely extend to more than 2 goods while still having well-defined .
(Actually, liquidity pool exchanges can be used even without computers; they don’t present complicated expressions unless someone wants to add goods to pool.)
Actually, this can be avoided by making the prices virtual and having a liquidity pool that would automatically allow to calculate prices. Liquidity pools can almost surely extend to more than 2 goods while still having well-defined .
(Actually, liquidity pool exchanges can be used even without computers; they don’t present complicated expressions unless someone wants to add goods to pool.)