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That is a reason inflation sucks, but there are many reasons for why alternatives suck even more. Deflation strangles the economy, while basing your monetary su
by vkou 2y ago
That is a reason inflation sucks, but there are many reasons for why alternatives suck even more. Deflation strangles the economy, while basing your monetary supply off the amount of metal you dig out of the ground results in a tag-team of uncontrollable deflation and inflation taking turns.
Unless you're planning on doing away with money entirely, it's the best of all possible worlds.
- logicchains 2y agoThe American economy was more stable and grew at a higher rate in the 100 years before persistent inflation policies were adopted than in the 100 years after.
- vkou 2y agoIt hasn't been 100 years since it left the gold standard, and in the hundred years prior, the country was industrializing and electrifying and experiencing exponential population growth, and picking all the other low-hanging fruit of easy economic gains. But yes, if we focus on a single cherry-picked difference between two dramatically different time periods, we can spin any spherical-cow narrative we want.