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>> If your money is worth more tomorrow, then you are incentivised to tighten your belt and not spend for as long as you can. At scale, this negatively affects
by rufus_foreman 1y ago
>> If your money is worth more tomorrow, then you are incentivised to tighten your belt and not spend for as long as you can. At scale, this negatively affects production, economic mobility, and so forth
By your logic, bonds are bad for the economy.
- strogonoff 1y agoCare to write more than a sentence and explain your logic?
- rufus_foreman 1y agoWhen you invest in bonds, they are worth more tomorrow than they are today. So you would have the same incentive to put off spending as long as you could as you would owning a deflationary currency. If that is bad for the economy when you're holding a deflationary currency, it should be bad for the economy when you're holding an appreciating asset.
- strogonoff 1y agoI don’t think bonds are currency. You buy bonds, you spend money, now your money is doing something in the economy as opposed to if you just held on to it.