Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Well on your last point it does. "Money should be inflationary" is a "weird ideological monetary policy idea" it's just one that you agree with?


> Well on your last point it does. "Money should be inflationary" is a "weird ideological monetary policy idea" it's just one that you agree with?

The idea that money should be stable with mild inflation seems to be the consensus view of the people (in multiple countries!) who actually have responsibility for the economy as a whole, and the economies that have stumbled into deflation don't seem very healthy.

Deflationary money seems to mainly appeal to people who are most concerned about jealously guarding the value of their little private hoard. Bitcoin was likely designed by someone like that who happened to be a talented programmer.


Deflation implies that the medium of exchange function of money has malfunctioned. You can't use money both as a medium of exchange and a store of value at the same time. It just doesn't work.

Inflation ruins the store of value function of money, but a little inflation isn't a bad tradeoff if the medium of exchange function of money keeps working.

The reason for this bias is that our society defines itself through a high degree of the division of labor. If money stops flowing, the division of labor stops and without the division of labor we are going straight back to the stone age (hyperbole). This is why economic recessions and depressions are feared more than economic booms.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: