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Since you advocate inflation, is it okay to distribute new money among everyone proportionally to their balances? If so, isn't it equivalent to mere change in d
by oleganza 14y ago
Since you advocate inflation, is it okay to distribute new money among everyone proportionally to their balances? If so, isn't it equivalent to mere change in denomination? (By the way, all bitcoins are divisible to 2000 trillion units.)
- DavidSJ 14y agoPrice rigidity means the costs of goods does not adapt immediately to fluctuations in money supply (e.g. employment & rent contracts take time to be renegotiated, price changes take time to ripple through the supply chain, etc.), so it's not equivalent.
- Groxx 14y agoSo, if our economy were to be immediately influenced by inflation efforts (say wages and costs automatically tracked it to the day)... then what? Though that's kind of crazy, it's far from a possibility. And, given the increasingly-global nature of business, anything like online sales could easily track this to the minute by watching exchange rates. It's definitely not there yet, but it almost seems inevitable given time.