4 ms·
A currency with zero nominal inflation translates to effective deflation in a growing economy. If you own x% of the moon, and no more moon can be printed, you'l
by goodside 17y ago
A currency with zero nominal inflation translates to effective deflation in a growing economy. If you own x% of the moon, and no more moon can be printed, you'll hold your lunar notes under a mattress waiting for their value to rise and nothing productive will ever get financing.
- gwern 17y agoI'd rather have a little ongoing deflation than risk becoming the next Weimar. Or China(s). Or Turkey. Or Yugoslavia. Or Zimbabwe... And inflation imposes costs of its own just from adjustment and uneven inflation discourages investment on its own (holding debt comes to mind).