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Pro-inflationists a simple question for you. Inflation creates an incentive to invest. Fine. But why should the level of inflation and thus the risk profile
by nazgulnarsil 15y ago
Pro-inflationists a simple question for you.
Inflation creates an incentive to invest. Fine. But why should the level of inflation and thus the risk profile for investors be determined by a single authority? Why not multiple competing currencies whose rates float against each other? Let the market figure out an optimal rate of inflation. The wild guesses and uncertainty of the Fed resetting the rate is surely inferior.
- pessimizer 15y agoThe world already works like that. You can buy money from countries other than the US, you know.
- nazgulnarsil 15y agoLegal tender laws should be abolished is the thrust.
- khafra 15y agoWhat's the advantage you get from even more currencies that you don't get from today's basket of international currencies? The only one I see is that, if you build a big enough reputation to issue your own currency, you get to collect seignorage. In exchange for that, you now have to carry n different currencies to make sure you can buy gas at a Shell station and an Arco; small retailers go out of business because they can't afford the overhead of combating so many varieties of counterfeiting--which, while still technically illegal, is much harder to prosecute--medium sized retailers go out of business because of the accounting overhead of setting appropriate prices when several currencies could be undergoing hyper(in|de)flation at any time. I'm not sure that's a good trade.