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In the "scrip" economy, couldn't they just let the value of the scrip change organically? If scrips are getting too precious, you can tell your babysitter that
by cool-RR 18y ago
In the "scrip" economy, couldn't they just let the value of the scrip change organically? If scrips are getting too precious, you can tell your babysitter that he'll be getting one scrip per two hours instead of one hour. If scrips are indeed that rare, he'll accept it, and the scrip-time ratio will naturally reflect the scarcity of scrips.
Since this thing does happen with Dollars, I reckon his analogy is bad, and adding more Dollars won't solve the problem.
- mhartl 18y agoYou've got it. I made the same point a few weeks ago: http://news.ycombinator.com/item?id=421617 http://news.ycombinator.com/item?id=421617. It doesn't seem like rocket science, but maybe it is; the vast majority of economists, including Nobelists like Krugman, just don't seem to get it.