[lawn]

This isn't about deflationary vs inflationary money, because you can encode any type of currency policy.

Instead it's about no single entity can suddenly decide "let's issue trillions of dollars to repay our debt!", which erodes any savings you have and can in the worst case collapse the economy (see hyperinflation).

What I guess you're after is having the ability to respond to the economic climate by stimulating the economy? Then let me introduce you to the concept of sound money and what Austrian economists have to say about it.[1]

The basic point is it's impossible for a single actor to predict the market behavior, it's why a planned economy doesn't work, because the market consists of actors who only act in their own best interest and don't have perfect knowledge.

[1]: https://mises.org/library/principle-sound-money

Edit: It is indeed possible to change the currency policy... If the community agrees, which is a very tall order.

[ianai]

That decision at the Fed has been historically taken after consultation of (if needed) the entire financial industry and academics and political leaders (to some extent).

[pwodhouse]

Are there any real world success stories of Austrian economics? It's like the libertarian version of communism's "works perfectly in theory".

How do civilians escape a depression with no money in an Austrian economy?

[maps]

> Are there any real world success stories of Austrian economics? It's like the libertarian version of communism's "works perfectly in theory".

It is exactly that. There is no example of pure austrian economics just as there has never been a 'true' communist state since human nature will never allow the extremes they need to work.

> How do civilians escape a depression with no money in an Austrian economy?

The entire point of 'sound money' is not actually to help the general population survive or prosper, it is specifically to limit the power of government. From the link above "It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments."

Of course you might have a depression, but that should be cleared up quickly since the free market allows the fit businesses to buy up weak competitors (since there is no anti-trust in austrian land). If you are unemployed during this time you can always find some labor job to do so will never be truly unemployed (since there is no minimum wage or restrictions to work).

[CloudNetworking]

> The entire point of 'sound money' is not actually to help the general population survive or prosper, it is specifically to limit the power of government

Isn't the point of limiting the power of government to actually help the general population to survive and prosper though?

[maps]

> Isn't the point of limiting the power of government to actually help the general population to survive and prosper though?

It might be a lovely side benefit, but no, I don't think it is the point or outright goal in austrian economics and libertarianism. The freedom itself is the goal, which does carry the potential to succeed and prosper but also the potential of complete and utter failure and misery with it. You are allowed to be a failure completely if you so choose here. I might be wrong on the philosophy here though as I have only really skimmed the surface of mises, hayek, rothbard, etc, but that is my understanding.