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A non-negative real yield on cash means its purchasing power never decreases. Is there an objective reason that the purchasing power of cash should never decrea

A non-negative real yield on cash means its purchasing power never decreases. Is there an objective reason that the purchasing power of cash should never decrease? Negative yields encourage economic activity and discourage hoarding (use it or lose it).

rightbyte 4y ago
Why would you want economic activity for the sake of it. Sounds wasteful.
uup 4y ago
That’s the economic orthodoxy. The semiconductor industry has been deflationary since its inception and there’s been plenty of economic activity.