Quote from: Puppet on March 25, 2013, 09:54:05 AM

Quote from: ErisDiscordia on March 25, 2013, 08:49:52 AM

Quote from: Puppet on March 24, 2013, 11:02:33 PM

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

There is certainly something to be said to create a more sustainable society, but I dont think the way to get there is by causing massive unemployment and killing the economy. Sure, doing so will preserve some resources for a bit longer, just like for instance the killing of 5 billion people would, but surely there are better ways to achieve that? A deflationary currency doesnt discriminate between resource intensive economic activity and eco friendly one, it will affect either in the same way. So if your claim is that it will decrease economic activity and therefore is desirable, then I think thats a silly proposition. You might as well argue for mass killings, war or famine

Your premise is, providing incentive for economic activity is the duty of a currency alone. If the currency doesn't motivate economic activity, all markets grind to a halt. This is very hard to argue for, especially with practical examples. Also, I want to repeat my question: If that is so, why didn't all markets grind to a halt till now because of gold?