Entire industries would sprout up to service the transparent inflation cryptocurrency. No one could hoard indefinitely. It would be beautiful. Make it so @Sig
My response was to the supposed necessity of population growth, not monetary inflation. Taking at face value your assertion that mild inflation is desirable, you can certainly generate inflation whether population is rising, falling, or stable - just print cash and hand it out. I've been hearing about "the challenges of Japan's demography" for two decades, and economists have been chirping about the country's supposed stagnation and endless depression for years before that. So when is the reckoning finally going to arrive? Where are the old people dying in the streets, where's the debt implosion, where are the falling living standards and spiraling economic collapse from falling demand or lack of workers or whatever else? On the labor front, I was in Japan just last year and saw the same old over-employment as always. I recall the comical scene of three prime-working-age crossing guards posted at a small, lightly-trafficked intersection where some road work was underway - or would've been underway, except it was nine in the evening. This is the great world-ending labor shortage? It's all just ideologically driven nonsense.
Your myopic view is exactly that... one dimensional. The money supply is a (very)small fraction of the the actual money supply which is created through LENDING/CREDIT! NOT THROUGH SPENDING! And don't forget when Aldi comes in and buys an asset, like real estate for instance, the seller now has money that did not previously exist in the money supply. Does that mean you have to include interest rates, and international capital flows, and credit, and central banks, and consumers, and for that matter, what money is? Well, yes, yes it does mean that.
Ah you have mistaken me for someone who agrees with what it's used for. Once you present a solution for managed inflation (for example, X amount added to everyone's account monthly as a cryptocurrency), you'll see that the purpose of inflation was wealth transfer from everyone to a select few.
from tiddlywinks Your myopic view is exactly that... one dimensional. The money supply is a (very)small fraction of the the actual money supply which is created through LENDING/CREDIT! NOT THROUGH SPENDING! And don't forget when Aldi comes in and buys an asset, like real estate for instance, the seller now has money that did not previously exist in the money supply. Does that mean you have to include interest rates, and international capital flows, and credit, and central banks, and consumers, and for that matter, what money is? Well, yes, yes it does mean that.--------------------------- this is the usual crap that you(Sig) delivers. it is mixed with seeing racism in every corner. you are an amateur race baiter. addressed to tiddly winks by sig "perhaps a basic grounding in macro would be beneficial to you before forming any more opinions on the matter." you, Sig, you should get a grounding in business cycles to understand the role deflation plays in creating a healthy economic cycle.
It's a good question: why do we need permanent growth? The answer is that money is created through debt. Economic machine 101. But what happens if money isn't created through debt? Growth becomes difficult. It's a balancing act. I think a more transparent approach to inflation would be a fair trade. But the entire point of the current system is to slowly steal from everyone for the benefit of the few.