The Cantillon Effect describes how asset price inflation affects different parts of the economy unequally. When new fiat money is added to the economy, it does not spread evenly everywhere at once. This causes prices of goods and financial assets to go up at different times and by different amounts. Some people and businesses will benefit more than others. The first people to get this new money can buy before prices go up at a discount.

This happens because new money is mostly given to banks almost for free. These banks can then use this money to buy things at lower prices before everyone else. As this new money spreads from banks to investors and then to regular people, prices start rising. By the time regular people feel the extra money, they have to pay more for the same things because their purchasing power has declined.

Those who get the money first, banks and asset owners, benefit the most. They have more financial advantages compared to people who get the money later. However, with the new Genius Act, things might change. This law allows the creating and issuing of digital Stablecoins in the U.S. Dollar system. Now, people who own equity in real world assets can use the blockchain distributed ledger technology to benefit from rising asset price inflation.