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So for example if you were going to release a currency unto the world that you wish to be distributed and for the peoples to adopt there are relevant and necess
by jipsom 11y ago
So for example if you were going to release a currency unto the world that you wish to be distributed and for the peoples to adopt there are relevant and necessary considerations (https://thewealthofchips.wordpress.com/2015/04/13/how-to-issue-a-currency-short-form/ https://thewealthofchips.wordpress.com/2015/04/13/how-to-iss...):
>There is a problem for the issuer of a currency, whether in coinage, paper, or electronic form, that if this currency (or money) is too good, then it could be exploited by all sorts of parties and interests that might simply wish to safely deposit a store of wealth or even to conservatively invest some assets for future good value.
>…under extreme conditions the currency issued by a state could be exploited by parties not of that state as a sort of “safe-deposit box” on which they would not need to pay any rental fees or fees like those paid to the managers of mutual funds for investment.
But there is this realization by Nash that is relevant (this version: http://www.jstor.org/stable/1061553 http://www.jstor.org/stable/1061553) :
>If the value trend of a currency is such that a natural interest rate is not negative, then it is not an unattractive task for a central currency authority to mint or print the physical currency that would circulate. Then the issuer of currency would be partially in the position of a borrower not paying interest on borrowed money.
And so:
>But, simply to improve the conditions under which agreements regarding long-term lending and borrowing would be made, a money would be more or less equivalently good if it had a completely steady and constant rate of inflation. Then this inflation rate could be added to all lending an borrowing contracts. Hence, the problem of a money that would be too good is avoidable.
In regards to inflation targets he remarks:
>…the possible area for evolution is that if, say, an inflation rate of between 1% and 3% is now considered desirable and appropriate in Sweden, then, if it is really controllable, why shouldn’t a rate between 1/2 % and 3/2 % be even more desirable?
It is quite interesting to think of what asymptotically ideal money might be in regards to bitcoins inflation schedule which 1/2's every four years until ultimately there is no inflation in regards to money supply.
>So here is the possibility of “asymptotically ideal money”. Starting with the idea of value stabilization in relation to a domestic price index associated with the territory of one state, beyond that there is the natural and logical concept of internationally based value comparisons.
>The currencies being compared, like now the euro, the dollar, the yen, the pound, the swiss franc, the swedish kronor, etc. can be viewed with critical eyes by their users and by those who maybe have the option of whether or not or how to use one of them. This can lead to pressure for good quality and consequently for a lessened rate of inflationary deprecation in value.