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the debasement was specifically so they could “print their way out of debt” — the effect is the same as with a fiat currency, “more dollars chasing the same qua
by cobbzilla 3y ago
the debasement was specifically so they could “print their way out of debt” — the effect is the same as with a fiat currency, “more dollars chasing the same quantity of goods” is a somewhat canonical definition of inflation and applies in both situations.
- User23 3y agoI’m afraid you’re being intentionally obtuse. I already gave one example of how debasing coinage is a different operation than issuing more IOUs, with considerably different consequences for participants in the respective systems, and your only response is a libertarian platitude about printing money and a statement about fiat that isn't particularly germane. There has been a historical case of actual monetary inflation in a commodity based currency system and that was in Spain. The treasure fleets brought back so much gold that there really was too much money chasing too few goods and services. It should be obvious that that kind of inflation is operationally a very different thing than currency debasement and much closer to issuing new fiat.
- cobbzilla 3y agoSorry I’m not going to argue basic economics. If that’s too obtuse that tells me all I need to know. Good luck.