tom, this is very classical disagreement between different school of economics.
The intentional inflation originates from Keynes because âThe gold standard â which John Maynard Keynes termed a âbarbarous relicâ â led to ruinous deflations.â
Keynes: Gold is bad for its deflation, while my moderate inflation theory is good, incentive of economics, etcâŠ
Hayek: Keynes is lack of economics. Even moderate inflation is poisonous, Keynesâ theory will definitely lead to disaster! The ultimate solution is good money which is neither inflation nor defaltion.
Yes, the Keynes supporters have many reasons:
[quote]This(moderate inflation) leads to a few advantages. The main one is that it incentivizes people who have stuff (ie assets) to go out and actually put them to use. This way more things get done, which is generally beneficial for society. This means more money circulating, more people getting paid, more businesses making revenue, more taxes⊠All good things.
Having more assets circulating also makes things more liquid. If people are more actively buying and selling, itâs probably easier to buy or sell whatever you need. This makes doing actual business easier. The main point of the economy is to move necessary things between people who need them, which is exactly what liquidity helps with.
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What Hayek said is:
Last but not least, why did satoshi invent bitcoin if he loves fedral reserve and its monetary policy? For many cryptocurrency believers, we are traitor of crypto world, giving up the dream of getting rid of corrupt central node/bank, the flunky of federal reserve.
