3 ms·
This is a common misconception, money is not valuable in and of itself, but only as much worth as it has as the "grease" that keeps the gigantic economic machin
by polygamous_bat 5y ago
This is a common misconception, money is not valuable in and of itself, but only as much worth as it has as the "grease" that keeps the gigantic economic machine rolling.
Value is being created all the time. The "total value" of the world is not stable, it's going up, and to make sure those arriving later at the game are not disadvantaged just because they arrived late, currencies need to be slightly inflationary so that they don't keep pooling in the hands of those who got there first.
- seibelj 5y agoI mean, why does the central bank have an official 2% inflation target? They should have an official 0% inflation target - stable prices, not 2% increasing prices. Increasing is not stable! And people always want more - that's the nature of humanity and why we live in skyscrapers instead of caves. You don't need a society-wide psychological experiment of currency-devaluation to encourage people to spend and invest money.