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by brc 4545 days ago
Well, no.

Inflation; it strangles an economy for obvious reasons that require nothing more than understanding the inevitable consequences of endless increasing the supply of your medium of exchange. Printing money is what keeps prices rising forever as the population and economy grows. If you endlessly print more money, you'd be forced into inflation; you think people like the value of their labor constantly reduced? Do vendors like rising prices across the board not because things are more expensive to produce, but because the value of money has fallen? How do make long term contracts when the value of your money isn't stable? How do you get a 30 year mortgage or rent a place when no one knows what the currency will be worth tomorrow? That's why fiat currencies always fail.

Inflation/Deflation are both effects - the difference is that it is impossible to reduce the prices of things to zero, but it is possible [and has been done, many times] to increase prices to infinity.

1 comments

Yes, they're both not ideal, but they aren't equal in badness. What's better, 1% inflation or 1% deflation, because 0 isn't possible. I suspect we can part ways with the answer to that question.