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I'm a bit late in replying, so I understand if you don't reply. I'm going to ignore the specific arguments about the gold standard and cryptocurrency. It's cer
by beatgammit 8y ago
I'm a bit late in replying, so I understand if you don't reply.
I'm going to ignore the specific arguments about the gold standard and cryptocurrency. It's certainly relevant to the discussion, but I'd like to avoid getting caught in the weeds.
What exactly is bad about deflation? All that's changing is the number printed on labels for buying goods. Instead of prices "going up", prices "go down". Inflation encourages spending and investing, deflation encourages saving, and monetary policy seems to always put us in the "inflation" end of the spectrum.
The real problem that needs to be addressed is rapid fluctuations, and from what I can tell, central banking causes the boom/bust cycle we're seeing instead of preventing it. Prices for goods at the store may remain constant, but valuations in the market certainly don't.
So my question is, would it really be so bad to have inflation instead of deflation by having less government involvement in the market? We can even have multiple currencies if you don't want to put your eggs in the same basket (gold, crypto, some other commodity)