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The problem with cash is that it prohibits sensible monetary policy in certain situations (i.e. negative interest rates). So instead of cash we would need anony
by beefield 7y ago
The problem with cash is that it prohibits sensible monetary policy in certain situations (i.e. negative interest rates). So instead of cash we would need anonymous physical (and digital) tokens whose value is not fixed, but is adjusted according to the interest rates.
I guess main problem is that to a very good approximation nobody wants these. Generally, the ones understanding monetary policy don't understand the need for privacy and the ones understanding need for privacy don't understand the need for negative rates and the rest don't care.
- 2a96eb7d685a49c 7y ago> The problem with cash is that it prohibits sensible monetary policy in certain situations This is a feature not a bug.
- cesarb 7y ago> So instead of cash we would need anonymous physical (and digital) tokens whose value is not fixed, but is adjusted according to the interest rates. So what you want is... cash. But cash from a separate currency. This is identical to what we had here in Brazil in the 90s during the Plano Real transition: the cash everyone had was in the Cruzeiro Real currency, but all the prices were denominate in URV (a "virtual" currency, which months later became a real currency called Real). The Cruzeiro Real was suffering from inflation at the time, but the URV was stable, so to buy something with a price of 1 URV you might pay CR$ 864,14 one week and CR$ 1004,68 the next week (source for these values: https://pt.wikipedia.org/wiki/Unidade_real_de_valor https://pt.wikipedia.org/wiki/Unidade_real_de_valor).
- beefield 7y agoYep, that is one way to do it to have an exchange rate between cash and account currency.
- tanseydavid 7y agoIt astonishes me that you refer to Negative Interest Rates as "sensible monetary policy."