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And inflationary money is not a bad thing. If the economy grows, the money supply can grow without it being devalued. For instance the Chinese money supply has
by Synaesthesia 1y ago
And inflationary money is not a bad thing. If the economy grows, the money supply can grow without it being devalued. For instance the Chinese money supply has grown enormously since the 90s, but the currency is still quite stable.
- KaiserPro 1y agoindeed! deflation and debt is a nasty nasty thing that causes a vicious feedback loop. Also, as you point out a fixed money supply would have caused painful distortions in the Chinese economy, as the yuan grew in value (like 0.00001yuan for a cup of tea)