4 ms·
What do you mean nobody? Austrian economists are a legitimate school of economics and they are in favor of deflation. It was Austrians who were able to predict
by snitko 14y ago
What do you mean nobody? Austrian economists are a legitimate school of economics and they are in favor of deflation. It was Austrians who were able to predict most of the collapses we've seen over the century. When Keynesians said it's impossible to have inflation and high rates of unemployment, it was Austrians who said they were wrong, which was proved in the 1960-70s.
- pkulak 14y ago[citation needed]
- hadronzoo 14y agoHere's a list of predictions: http://wiki.mises.org/wiki/Austrian_predictions http://wiki.mises.org/wiki/Austrian_predictions
- Aloisius 14y agoI would like to point out that the Austrian school teaches that economic predictions are impossible to make which is incredibly convenient when one of their theories breaks down completely (e.g. the Austrian Business Cycle Theory has been shown to be empirically false during all recessions we have data for). Also, mises.org isn't exactly an objective third party.
- splat 14y agoAustrians are fine with price deflation, but not monetary deflation: "If a man has been hurt by being run over by an automobile, it is no remedy to let the car go back over him in the opposition direction." -- Ludwig von Mises (http://mises.org/mmmp/mmmp5.asp http://mises.org/mmmp/mmmp5.asp)
- hadronzoo 14y agoJust to clarify, Austrians define monetary deflation as a contraction in the total supply of a given money. In this case, it would mean a decrease in the total number of Bitcoins.
- pixelcort 14y agoSupply contraction won't happen in Bitcoin until sometime before 2140, when the number of coins lost to hard drive crashes or which are otherwise difficult to spend start to outrun new coins minted.
- Unoeufisenough 14y agoThere is also a big difference between "some deflation" and run-away thousand percent exponential deflation. The Austrians may not have been contemplating the later. Or not have been contemplating that any sober person would propose a currency scheme with that as a fundamental feature throughout it's adoption phase.