3 ms·

So you're saying the Fed prints dollars by the millions during booms and destroys them again by the millions during busts? Who cares if prices stay stable or n

• gnaritas 13y ago
  The government has more than one control over the current money supply, fractional reserve lending allows the money supply to grow and shrink as demand requires while the fed attempts to maintain an overall small inflation rate to avoid the ill effects of deflation. > Who cares if prices stay stable or not? Everyone who understand economics even a little bit. > The value represented by whatever price is attached to those things won't change People aren't paid in value and they don't spend value, they're paid in currency and they spend currency and they all care that prices are stable because their paychecks aren't going to suddenly change.
  • lectrick 13y ago
    If it is not useful as a value store except to speculators, then it still has plenty of utility as a value transfer mechanism or a universal FOREX.
    • gnaritas 13y ago
      No one said it didn't have value, merely that it's not a good currency because it won't have a stable value if used as a currency.