Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
billyjoeallen
on 07/01/2014, 11:04:50 UTC
If said "In inflationary system like we have today it's suggested that 2% inflation is "healthy" for the economy."
true, why we don't have inflation of bitcoins? Please correct me if i am wrong. Undecided  Bitcoins numbers will not rise in the far future. But demand will increase what can happen after that...

any quantity of money is sufficient for the money supply. prices adjust. inflation discourages capital formation, which, along with technology improvements, is what increases productivity, wealth and the standard of living for everybody. Capital formation is being destroyed by the fiat currencies and global productivity is slowing because of it.