Dead people in the City were... well, not really dead. They... [we, he should say, but he doesn't.] In most ways they were just. Normal. Walking and talking and fine, but cold, no heartbeat. But you could trade to get it back, or if you were very lucky, sometimes get it as a gift.
The City was a lot like this. A lot of people from different places, and the curses were a little like what happened with those furry things. You could call it a prison, I guess. Some people saw it that way.