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Inflation Is a Moral Wrong
- anovikov 5y agoBullshit. "Monetary stability" is only possible when the GDP and population are also stable, that is, in the pre-industrial Malthusian society. Through XVth century that worked fine, then came Age of Discovery that distorted supply of first money (through imported stolen gold), then goods (through colonial production). That was still OK but when industrialisation got to be a thing, it just stopped working. XIX century was the age of almost non-stop economic disaster and bust and boom cycles unseen ever before or after, even worse than the Great Depression - not as widely remembered because leveraged trading wasn't as widespread so fewer people got completely bankrupt, and because XX-century economic statistics engine did not exist yet so people just didn't know properly what was going on. Fiat money saved the day. There cannot be a stable pricing level without either natural (gold + Malthusian fixed-supply agrarian society) or some truly dystopian artificial stability of supply of both money and goods. Just not possible today.
- PaulHoule 5y agoYep. Back when we had the gold standard we had an economic crisis every few years. https://www.ncpedia.org/panics-economic https://www.ncpedia.org/panics-economic Inflation is a problem but so is economic instability.
- garbagecoder 5y agoUgh, why are people so eager to guarantee rentseekers get rewarded forever?
- jfengel 5y agoBecause they're seeking rent. Monetary stability is very important to people with lots of money (or imagine they do/will).