Post
Topic
Board Bitcoin Discussion
Re: Could Scotland’s currency be bitcoin?
by
Verse
on 18/09/2014, 23:47:40 UTC
Governments actually like to try to keep inflation as low as possible. If a country has too high of inflation then the standard of living of it's citizens would decline and if it were to stay like that for long enough the citizens would leave and try to go somewhere with better economic opportunities.
I do not disagree. However most governments run on a cycle of debt, issuing bonds and repaying those loans through taxes. Bond yields are paid in the same fiat they are bought with. If inflation goes up, the real value of those yields and therefore those payments decreases. So inflation allows a government to decrease the burden of their payments.

I'm suggesting there's a conflict of interest, not a conspiracy. I understand that governments do not regularly cause rapid inflation in order to pay off debts, but some have. Germany after WWI is a prime example.