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> To fulfill its role as a stable store of value, a currency has to be managed. But they don’t optimize for “stable store of value” over “full employment” or “
by UncleEntity 4y ago
> To fulfill its role as a stable store of value, a currency has to be managed.
But they don’t optimize for “stable store of value” over “full employment” or “hidden taxation through monetary inflation”.
In fact, they have the opposite goal because “the velocity of money” is negatively influenced by people using money as a store of value. Keeping money in a savings account and collecting interest is bad for society because reasons.
- walnutclosefarm 4y agoManaging to a limited inflation that is close to the actual growth in the economy supporting a fiat currency, is managing the currency so that it represents a stable store of value. Managing for full employment is probably a cofactor in stability, although a less direct corollary than managing inflation.