"The incentive not to purchase more real goods increases as the currency appreciates because every unit of currency not spent now will be able to purchase even more real goods in the future. Hence, people avoiding spending now except for essential goods.
This inevitably results in massive deflation and eventually destroys the economy, rendering the accumulated appreciation worthless."
"> Do you have a single rational standard of what's "productive" and "not productive"?
Yes. Trade is productive, it is the highest civic virtue. Hoarding is not productive, it makes us all poorer."
"Appreciating currencies are disastrous for any economy stuck with them, which is why we're no longer on the gold standard."
And tons of other pseudo-intellectual bullshit about why "people should use depreciating currencies because it's good for society". Source: http://news.ycombinator.com/item?id=5323867
Nice selection. Very relevant (unlike the following poser). This inevitably results in massive deflation and eventually destroys the economy, rendering the accumulated appreciation worthless."
"> Do you have a single rational standard of what's "productive" and "not productive"?
Yes. Trade is productive, it is the highest civic virtue. Hoarding is not productive, it makes us all poorer."
"Appreciating currencies are disastrous for any economy stuck with them, which is why we're no longer on the gold standard."
And tons of other pseudo-intellectual bullshit about why "people should use depreciating currencies because it's good for society". Source: http://news.ycombinator.com/item?id=5323867
