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In early eighties many central banks tried targeting the amount of money in circulation to achieve stabe inflation, but failed. There is no reason to expect tha
by beefield 9y ago
In early eighties many central banks tried targeting the amount of money in circulation to achieve stabe inflation, but failed. There is no reason to expect that a predefined rate of money supply would generate a predefined inflation. (See: gold, bitcoin)
- nerdponx 9y agoFair enough on the money supply point, although crypto currency so far has been somewhat isolated from the economics of nationstates, which are much more complicated than pure market forces. My take: As long as people still "think in dollars" while they are spending cryptocurrency, purchasing power of cryptocurrencies will be pegged to the dollar. Neither gold nor bitcoin is "inflated" as currency. The dollar inflates (or doesn't), and if you want to pay for something denominated in dollars using something other than dollars, you simply convert at the current spot market rate. There won't be a Bitcoin macroeconomy until things are truly denominated in Bitcoin.