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There are a lot of economists that would argue that deflationary spirals don't actually occur, mainly Chicago and Austrian School economists.
by wuliwong 13y ago
There are a lot of economists that would argue that deflationary spirals don't actually occur, mainly Chicago and Austrian School economists.
- eli_gottlieb 13y agoIn which case those economists are simply wrong.
- zanny 13y agoSeriously, anyone who thinks deflation is good is either short sighted or stupid. Fundamentally, if my money is worth more tomorrow, I won't spend it today, and you halt the entire economic system like that. I like peercoin, which is a bitcoin that can maintain wallets without the full block chain, do less expensive proof of work problems when the network is computationally competitive enough, and has a fixed inflation rate of 1%. The only improvement I'd like to see is a currency that uses a coin generation algorithm based off recent monetary velocity, so that if exchange slows the inflation rate increases to stimulate more exchange, and if a lot of money is changing hands the inflation rate is slowed, with a targeted turnover ratio of the entire economy that is whatever is most economically healthy, it would require research.