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How much deflation is good? The point of Friedman-style 2% inflation seems to be to steadily, but not abruptly, drive up prices, increasing wages, increasing de

How much deflation is good? The point of Friedman-style 2% inflation seems to be to steadily, but not abruptly, drive up prices, increasing wages, increasing demand. I see the personal, anti-social case for "giving in to our greed", as the time traveler put it [1], but what are the social benefits of lowering production, wages, demand? 1. https://www.reddit.com/r/Bitcoin/comments/1lfobc/i_am_a_timetraveler_from_the_future_here_to_beg/1 https://www.reddit.com/r/Bitcoin/comments/1lfobc/i_am_a_time...

ObserverNeutral 6y ago
The time traveler post is really great . But the most absolutely bit is the "giving in to our greed" : "Why didn't we abandon Bitcoin, and move to another system? Well, we tried of course. We tried to step over to an inflationary cryptocurrency, but nobody with an IQ above 70 was willing to step up first and volunteer. After all, why would you voluntarily invest a lot of your money into a currency where you know your wealth will continually decline? The thing that made Bitcoin so dangerous to society was also what made it so successful. Bitcoin allows us to give into our greed." The whole social benefits thing that we somehow had up to now was pure luck. If bitcoin hodlers keep a low profile and don't spend there would not be any way to identify them and redistribute wealth. This is especially true for those who mined btc.
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