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I'm not sure it's possible to create a stable (in the sense that prices for the things you buy don't go up or down) currency that isn't somehow managed. If the
by gozur88 10y ago
I'm not sure it's possible to create a stable (in the sense that prices for the things you buy don't go up or down) currency that isn't somehow managed. If the currency becomes more popular prices will go down. During recessions prices will go up.
The fractional reserve system, which injects money into the economy as the economy grows, is an attempt to create that stability. But you'll never create a workable fractional reserve currency that isn't intimately tied with government regulations.
The most you could probably ask for is a digital currency that wasn't subject to the whims of politicians and central bankers.
- h4nkoslo 10y agoThis is widely known as the "trilemma"; you can have at most 2 of: - Fixed exchange rate - Free movement of capital - Ability to conduct your own monetary policy https://en.wikipedia.org/wiki/Impossible_trinity https://en.wikipedia.org/wiki/Impossible_trinity