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> Many economies have collapsed or people have been severely harmed from runaway inflation. False dichotomy. The last 50 years of monetary policy in developed
by School-Cotton 5y ago
> Many economies have collapsed or people have been severely harmed from runaway inflation.
False dichotomy. The last 50 years of monetary policy in developed countries show that you can have moderate inflation (yes, sometimes a bit too much, like now, but moderate overall) without hyperinflation.
- berberous 5y agoDo you think 50 years is all that long in the historical context? America showed that you could have hundreds of years of stable democracy until a simple combination of cable news, Twitter and a narcissistic president almost led to a coup. The Roman republic was stable for hundreds of years until it collapsed. The Turkish lira has lost more than 97 per cent of its value against the US dollar since January 2021. I agree with you that the 1950-2010 world order and U.S. monetary system was better than Bitcoin. Where we disagree I think, is with our confidence in the stability of human institutions and the likelihood that the world necessarily remains stable in that world order for the next 1,000.
- radford-neal 5y agoThe question is not whether it's possible for a central bank to maintain a policy that leads to only moderate inflation, but whether your central bank will maintain such a policy. You seem to think that being a "developed" country will guarantee that. Like the highly developed country of Germany in the 1920s perhaps?