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Not true, if money supply does not grow with population or economic growth it will be deflationary aka not stable. If deflation continues then people will hold
by belltaco 5y ago
Not true, if money supply does not grow with population or economic growth it will be deflationary aka not stable. If deflation continues then people will hold onto money rather than buy things with it since things become relatively cheaper every day, which leads to economic downturn.
- plebianRube 5y agoIs that a bad thing? Items would become more durable, planned obsolescence for products would all but disappear. Things would need to last a long time otherwise people won't spend on it. It would be good for landfills, fewer electronics and plastic garbage. I think it's sad that people in 2020s aftaid to hold savings because they know if they don't spend it, their buying power is reduced tomorrow.
- deleted 5y ago[deleted]