Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend
This is why gold never worked as a monetary system either
Great insight !
Keynesians are wrong in many respects, but they are a great theory if you are a state: it gives you the excuse to get more and more your hands on everything, and to spend more than you can. Who wouldn't be seduced by the prospect that spending like crazy is a good thing ?
Gold hasn't been a monetary system for a long time. Certainly not in Keynes time.
Besides gold is not deflationary so what does it have to do with this statement?