Post
Topic
Board Economics
Re: The future of the paper money
by
BobK71
on 29/09/2015, 00:46:53 UTC
In a truly free market, lack of demand (deflation) is naturally self limiting.  As savers get older, richer, and prices get lower, at some point, it will make sense to consume.  Consumption will then drive investment.  The problem is that the modern economy is so addicted to asset inflation that it can't afford to wait for this process to take effect.

With age people usually begin saving instead of spending, or just save more than they did before

My comment was directed at the alternative universe that mainstream economics would have us believe under non-state money: that everyone would hoard money and everything would deflate.