|
|
|
|
|
|
by rsj_hn
1705 days ago
|
|
|
It is more than just people being angry. As was famously pointed out by Axel Leijonhufvud, inflation makes the process of economic planning extremely difficult. If you are a business, you need to make long term production plans, and when you have no idea what the costs will be, that severly disrupts the production process and leads to shortages regardless of how you feel emotionally about something. Instead of talking about "inflation", talk about "cost uncertainty". That should make clear how a complex society with long production chains can't really deal with it. That also includes households, who have much less capability for planning than firms and really need to know what their bills will be and how much things will cost when making decisions. https://www.academia.edu/43768978/NOTES_ON_COSTS_AND_CONSEQU... |
|
|
It doesn't, though.
> If you are a business, you need to make long term production plans, and when you have no idea what the costs will be, that severly disrupts the production process
Sure, but that's the effect or unpredictable price changes, not inflation. USD is inflationary, Bitcoin is deflationary, but future (short or long term) prices of other goods and services in USD have a lot less uncertainty than those in Bitcoin. Inflation is not at all the same thing as difficulty projecting future prices.