...So not only is the wizarding economy almost completely decoupled from the Muggle economy, no one here has ever heard of arbitrage. The larger Muggle economy had a fluctuating trading range of gold to silver, so every time the Muggle gold-to-silver ratio got more than 5% away from the weight of seventeen Sickles to one Galleon, either gold or silver should have drained from the wizarding economy until it became impossible to maintain the exchange rate. Bring in a ton of silver, change to Sickles (and pay 5%), change the Sickles for Galleons, take the gold to the Muggle world, exchange it for more silver than you started with, and repeat.

the brown-dragon blog

Harry Potter and The Methods Of Rationality

2010-10-19

I read a lot but I really think this is one of the most interesting things I've ever read. It's not for everyone but if you are the type of person who read Harry Potter and thought:

- Set up experiments to test magic
- Witches turn into CATS? ...But_..._but_..._but... What about conservation of mass?
- Gringots deals in gold? There are arbitrage opportunities between muggles and the wizarding world!
- I have a Time turner? I can try to prove that P == NP

Read this Book!

Harry Potter and The Methods Of Rationality!

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