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by s1artibartfast
818 days ago
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I would say it's heterogeneous, not a gradient, but I understand your point. However, my point is that inflationary monetary policy precludes cash savings forcing currency owners to take on additional risk to mitigate inflationary losses. Like the parent post points out, it incentivizes investment. If your currency is inflating at 5% per year, it becomes rational to buy an asset which depreciates at 4% per year. More generally, individuals and Society have to perpetually Gamble on growth in order to stay ahead of inflation. |
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