Quote from: joe on February 25, 2011, 08:19:52 AM

Demurrage is exactly the same thing as increasing the money supply. There are no special economic results that will occur under demurrage that will not happen under regular money supply inflation.

Demurrage is simply expressing the amount of bitcoins you have as a fraction of the total supply instead of hard units.

Now I know what you meant. You say freicoin is equivalent to expocoin/kingcoin.
Here's my answer. Sorry for the long wait.

Quote from: jtimon on July 22, 2011, 04:28:20 PM

Quote from: cunicula on July 22, 2011, 01:11:20 PM

Ok there are these nominal differences. Do they matter for economic decision making in some way?

Yes.
Demurrage fights the basic interest and allow capital yields to drop to zero like profits do by competition.
Of course, there would be innovations that would allow capital yields (if they deserve that name in that context) to rise temporally in some sectors, but new capital of those types would be produced again until the profits go to zero. With money-capital, the other capitals can't drop below the basic interest by competition, because money won't allow its production if they're not going to yield the same or more than what money can yield from the wares.

On the other hand, inflation (if predictable and not based on monetizing cheap debt) only rises the gross interest by rising its inflation premium component, leaving basic interest/liquidity premium intact.
If inflation is based on monetizing cheap debt, inflation is much worse because it alters the financial market letting some investors (usually governments) borrow cheaper outside the market and lenders with demand for their money artificially reduced.

government or central bank printing != block chain currency with exponentially growing monetary base (expocoin) != block chain currency with demurrage (freicoin).

Demurrage also promotes long term thinking.