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Expiring money sounds hard to enforce. It clearly wouldn't expire after it was spent or transferred. So how do you guarantee that it is spent/transferred to som

Expiring money sounds hard to enforce. It clearly wouldn't expire after it was spent or transferred. So how do you guarantee that it is spent/transferred to something that isn't a savings vehicle?

npunt 6y ago
Wouldn’t a ledger be a path to solving this?
naniwaduni 6y ago
Hyperinflation basically achieves this.
- tablespoon 6y ago
  > Hyperinflation basically achieves this. I don't think so. I think the idea they want the money to lose its value only if someone hoards it. If it's spent quickly enough, it retains its full value now and in the future. That's not how hyperinflation works.
  - razius 6y ago
    What do you think hyperinflation is? "Gary North tells a story of a German citizen who realized too late that her money was on the way to becoming worthless: "…the truly marketable goods were gone. They were being hoarded. All she found was a large inventory of bedpans. She bought them in late 1923." https://mises.org/library/weimar-and-wall-street https://mises.org/library/weimar-and-wall-street
- imtringued 6y ago
  Hyperinflation is an economy wide collapse in production though. If every human in the nation lost trust in the currency but there was enough production capacity to feed everyone then exports would rise until the currency appreciates to normal levels again. However, most nations suffering from hyperinflation don't have enough products to export in the first place.
simonh 6y ago
I suppose you pay it as taxes, or banks pay it as interest to the central bank. It does seem odd though.
trompetenaccoun 6y ago
Of course the money would flow to safe havens an accumulate there. Besides all the known issues with UBI, a populists' favorite. This thread demonstrates vividly how little the average person understands about economics and finance, even in a place like HN.
imtringued 6y ago
>So how do you guarantee that it is spent/transferred to something that isn't a savings vehicle? Would you sell your gold for expiring money? The exchange rate would be much worse than the regular one.

Expiring money sounds hard to enforce. It clearly wouldn't expire after it was spent or transferred. So how do you guarantee that it is spent/transferred to something that isn't a savings vehicle?

npunt 6y ago

Wouldn’t a ledger be a path to solving this?

naniwaduni 6y ago

Hyperinflation basically achieves this.

tablespoon 6y ago
> Hyperinflation basically achieves this. I don't think so. I think the idea they want the money to lose its value only if someone hoards it. If it's spent quickly enough, it retains its full value now and in the future. That's not how hyperinflation works.
- razius 6y ago
  What do you think hyperinflation is? "Gary North tells a story of a German citizen who realized too late that her money was on the way to becoming worthless: "…the truly marketable goods were gone. They were being hoarded. All she found was a large inventory of bedpans. She bought them in late 1923." https://mises.org/library/weimar-and-wall-street https://mises.org/library/weimar-and-wall-street
imtringued 6y ago
Hyperinflation is an economy wide collapse in production though. If every human in the nation lost trust in the currency but there was enough production capacity to feed everyone then exports would rise until the currency appreciates to normal levels again. However, most nations suffering from hyperinflation don't have enough products to export in the first place.

simonh 6y ago

I suppose you pay it as taxes, or banks pay it as interest to the central bank. It does seem odd though.

trompetenaccoun 6y ago

Of course the money would flow to safe havens an accumulate there. Besides all the known issues with UBI, a populists' favorite. This thread demonstrates vividly how little the average person understands about economics and finance, even in a place like HN.

imtringued 6y ago

>So how do you guarantee that it is spent/transferred to something that isn't a savings vehicle? Would you sell your gold for expiring money? The exchange rate would be much worse than the regular one.