Last Updated Aug 27, 2007 9:54 AM EDT
It's a pile of cash that almost any schmoe would love to have, but here's the clincher: a large portion of it comes out of thin air. The Ludwig von Mises Institute writes in its analysis that Linden Labs (creators of Second Life) have been playing Keynesian hat tricks with the Second Life currency (known as the Linden). The Institute estimates that the Linden money supply doubles every year.
Each Linden is worth about 1/275th of a U.S. dollar, and can literally be exchanged for cash online. The Institute's recommendation? Begin employing Austrian School economic policies in its virtual world. Otherwise, hyperinflation in Second Life would ensue. The results could be [virtually] disastrous.