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Fixed supply is deflationary in a world where population increases. Whether or not population will continue to increase is another question.
by lampshades 4y ago
Fixed supply is deflationary in a world where population increases. Whether or not population will continue to increase is another question.
- JumpCrisscross 4y ago> Fixed supply is deflationary in a world where population increases This assumes the whole world uses the currency, which is untrue for every currency in the history of humanity, and that per capita output per person using the currency is at least flat, which is also questionable. Demographics are an input into monetary policy. But the effect is way fuzzier than you imply [1]. [1] https://ssl.nbp.pl/publikacje/materialy_i_studia/284_en.pdf https://ssl.nbp.pl/publikacje/materialy_i_studia/284_en.pdf