by Summary:
Cautionary Inflation Tale
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Steve Keen considers the following as important:
This could be interesting, too:
Cautionary Inflation Tale
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
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| Cautionary Inflation Tale |
How can we simulate demand and be a Eco tree hugger 😂
Lower private debt, cheaper housing, higher sales tax on polluting items
Money origins in credit. Since credit has a loan term, it would be logical, if the money, when being created, would have a term too.
Without people could save the money for a longer period than the credit contract does allow. So you can have a situation, that the debtors may only goe bust because the flow of money back to them is smaller than the flow of money they create – only because there is too much saving in the economy.
Which means: savers are able to destroy the value of their money just by how they save, because the value behind the money is the supply that must be created by the debtors and which they must sell. If they go bust because of the missing demand, the problem will reach the savers somehow too.
But the system does not give the savers a feedback, when it is about the time to spend their savings. So deprecating money could give this feedback.