Post
Topic
Board Economics
Re: Krugman makes some good points
by
ErisDiscordia
on 25/03/2013, 08:49:52 UTC
A purely deflationary currency provides no incentive for investment or economic activity

I'd like to point out, that this might actually be a positive aspect. Right now the worlds monetary system is geared towards infinite growth. This strikes me as not very smart since last time I checked, we were living on a planet with finite resources. A deflationary (not sure, this technically applies to Bitcoin. Bitcoin does have inflation, but it's small, controlled, predictable and finite) currency might act as a catalyst for change in the way we think about the economy and lead us from a growth oriented to a sustainability oriented model. I don't see it as a threat to general prosperity if people stop spending currency like it's hot potatoes and going into debt in order to fuel consumption - on the contrary. A currency increasing in value over time encourages saving - delayed consumption, as in "lets' not strip the planet bare to the bones right now to have 5 ipads and 4 cars each but let's leave something for later generations". Just my two Satoshis.