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I don't think anyone would agree that USD-centric societies discourage hoarding. No offense, but I think it would be wise to familiarize yourself with the basi

by gone35 13y ago

I don't think anyone would agree that USD-centric societies discourage hoarding. No offense, but I think it would be wise to familiarize yourself with the basics of a subject before forming high-confidence blanket opinions about it like that. (The same applies to your other comment about why anyone would think an inflationary economic policy would be desirable at all.) Sorry if I sound patronizing, but as it happens the link between inflation and hoarding is one of the few well-established empirical facts in economics [1,2,3] with ample historical evidence both from the well-documented shortage effects of price controls [4], to the well-understood effect of changes in bond yields on the money demand [5], which is the cornerstone mechanism of basic monetary policy. [1] http://en.wikipedia.org/wiki/Hoarding_(economics) http://en.wikipedia.org/wiki/Hoarding_(economics) [2] http://en.wikipedia.org/wiki/Inflation http://en.wikipedia.org/wiki/Inflation [3] Milton Friedman once said: "We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas." From http://en.wikipedia.org/wiki/Price_controls http://en.wikipedia.org/wiki/Price_controls. [4] http://en.wikipedia.org/wiki/Price_controls http://en.wikipedia.org/wiki/Price_controls [5] http://en.wikipedia.org/wiki/Monetary_policy#Policy_tools http://en.wikipedia.org/wiki/Monetary_policy#Policy_tools

drewblaisdell 13y ago
> No offense, but I think it would be wise to familiarize yourself with the basics of a subject before forming high-confidence blanket opinions about it like that. High-confidence blanket statement? I was asking a question. The opinion in question was poorly worded-- I understand that inflation means money either loses value or must be reinvested in the economy. I just don't think that inflation prevents a wealth incumbency (which I inappropriately referred to as "hoarding"). > (The same applies to your other comment about why anyone would think an inflationary economic policy would be desirable at all.) I was referring to how the protocols have an identical economic policy (majority rules), not to inflation vs. deflation as economic policy (which I stated explicitly). I was mainly curious about whether or not inflation vs. deflation matters in terms of preventing a rich-get-richer society. My admittedly poorly worded question seems to have given many HNers an opportunity to feel good about letting me know they understand a classical economic concept.

by gone35 13y ago

drewblaisdell 13y ago

> No offense, but I think it would be wise to familiarize yourself with the basics of a subject before forming high-confidence blanket opinions about it like that. High-confidence blanket statement? I was asking a question. The opinion in question was poorly worded-- I understand that inflation means money either loses value or must be reinvested in the economy. I just don't think that inflation prevents a wealth incumbency (which I inappropriately referred to as "hoarding"). > (The same applies to your other comment about why anyone would think an inflationary economic policy would be desirable at all.) I was referring to how the protocols have an identical economic policy (majority rules), not to inflation vs. deflation as economic policy (which I stated explicitly). I was mainly curious about whether or not inflation vs. deflation matters in terms of preventing a rich-get-richer society. My admittedly poorly worded question seems to have given many HNers an opportunity to feel good about letting me know they understand a classical economic concept.