A quick note on the idea seemingly accepted throughout economics that an instant doubling of all the cash would

*ceteris paribus*decrease the value of that cash by half (and e.g. prices would double). See this diagram here; the curve is reproduced as a dashed gray curve above. It seems to derive from a particular marginal utility model of cash (where value is inversely proportional to the quantity).
If we use the information transfer framework, instead of ~ 1/x, we have ~ log 1/x behavior (shown in blue in the figure above, see Eq. 8a,b here). For small changes the 1/x scaling approximates the curve (log 1/x ~ -1 + 1/x near x = 1), but for larger shifts 1/x underestimates the decrease in value (and over estimates the increase in value)

The information transfer framework shows that under a doubling of the monetary base (ΔM/M = 1) the value of cash decreases to ~ 1/e ≈ 0.37 < 0.5.

Instead of an "inversely proportional fall in marginal utility", you would see a "logarithmic fall in relative bandwidth utilization". If I double the number of bits available to describe the economy, the quantity of states goes up by much more than a factor of two.

I should note that the axes are transposed as is frequently done in economics -- "x" in the above is the vertical axis and "y = log 1/x" is the horizontal axis.

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