Were the Keynesians wrong? - page 5.

username18333

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Quote from: Elwar on January 15, 2015, 04:03:50 AM

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

But it is currently inflating more than the dollar and yet spending has not increased.

Can Keynesians ever be right or has there been any instance throughout history where they have been right? Other than 600 years ago when tulips happened. Once.

Code:

⅟ₙ > ⅟ₙ₊ₘ ⇔ 𝑛 + 𝑚 > 𝑛

Generally speaking, Bitcoin spending has not increased because its inflation rate has only decreased.

Elwar

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Quote from: twiifm on January 15, 2015, 04:16:08 AM

Quote from: Elwar on January 15, 2015, 04:03:50 AM

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

But it is currently inflating more than the dollar and yet spending has not increased.

Can Keynesians ever be right or has there been any instance throughout history where they have been right? Other than 600 years ago when tulips happened. Once.

It's you who don't understand the concept. It applies to macro level not some little private speculators plaything.

Spending hasn't increased because it's used to speculate. The holder are treating it as a commodity not a currency. Also it's a private outside money.

I see, so it is a concept that is useful for talking among college professors and politicians but not useful in the real world. Understood.

twiifm

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Quote from: Elwar on January 15, 2015, 04:03:50 AM

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

But it is currently inflating more than the dollar and yet spending has not increased.

Can Keynesians ever be right or has there been any instance throughout history where they have been right? Other than 600 years ago when tulips happened. Once.

It's you who don't understand the concept. It applies to macro level not some little private speculators plaything.

Spending hasn't increased because it's used to speculate. The holder are treating it as a commodity not a currency. Also it's a private outside money.

Elwar

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Activity: 3598

Merit: 2386

Viva Ut Vivas

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

But it is currently inflating more than the dollar and yet spending has not increased.

Can Keynesians ever be right or has there been any instance throughout history where they have been right? Other than 600 years ago when tulips happened. Once.

twiifm

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Activity: 784

Merit: 500

Quote from: dinofelis on January 15, 2015, 02:10:28 AM

Quote from: username18333 on January 15, 2015, 02:08:40 AM

Quote from: dinofelis on January 15, 2015, 02:07:24 AM

Quote from: twiifm on January 15, 2015, 02:00:10 AM

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

This is why gold never worked as a monetary system either Cheesy

Great insight !

Quote from: username18333 on January 15, 2015, 02:03:13 AM

. . .

It inflates initially; however, that inflation decreases to nothing over time (and, in fact, “becomes” deflation as the rate whereat coins are lost or made “unspendable” overtakes their production).

Yes, exactly like gold.

My comment was ironic, because gold was the universal money for about 5000 years, until it was taken over by fiat, which was initially a gold scam.

This is wrong. You Need to read Graebers History of Money

In modern times gold was reserve money and mainly used for international trade but inside the nation, money was largely credit money. Credit money and metal money have always coexisted. Gold itself wasn't the money it's the coins with stamp of the king on it. In essence money has always been a creature of law whenever there is a state

twiifm

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Quote from: dinofelis on January 15, 2015, 02:07:24 AM

Quote from: twiifm on January 15, 2015, 02:00:10 AM

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

This is why gold never worked as a monetary system either Cheesy

Great insight !

Keynesians are wrong in many respects, but they are a great theory if you are a state: it gives you the excuse to get more and more your hands on everything, and to spend more than you can. Who wouldn't be seduced by the prospect that spending like crazy is a good thing ?

Gold hasn't been a monetary system for a long time. Certainly not in Keynes time.

Besides gold is not deflationary so what does it have to do with this statement?

dinofelis

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Quote from: username18333 on January 15, 2015, 02:08:40 AM

Quote from: dinofelis on January 15, 2015, 02:07:24 AM

Quote from: twiifm on January 15, 2015, 02:00:10 AM

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

This is why gold never worked as a monetary system either Cheesy

Great insight !

Quote from: username18333 on January 15, 2015, 02:03:13 AM

. . .

It inflates initially; however, that inflation decreases to nothing over time (and, in fact, “becomes” deflation as the rate whereat coins are lost or made “unspendable” overtakes their production).

Yes, exactly like gold.

My comment was ironic, because gold was the universal money for about 5000 years, until it was taken over by fiat, which was initially a gold scam.

username18333

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Activity: 378

Merit: 250

Knowledge could but approximate existence.

Quote from: dinofelis on January 15, 2015, 02:07:24 AM

Quote from: twiifm on January 15, 2015, 02:00:10 AM

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

This is why gold never worked as a monetary system either Cheesy

Great insight !

Quote from: username18333 on January 15, 2015, 02:03:13 AM

. . .

It inflates initially; however, that inflation decreases to nothing over time (and, in fact, “becomes” deflation as the rate whereat coins are lost or made “unspendable” overtakes their production).

dinofelis

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Quote from: twiifm on January 15, 2015, 02:00:10 AM

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

This is why gold never worked as a monetary system either Cheesy

Great insight !

Keynesians are wrong in many respects, but they are a great theory if you are a state: it gives you the excuse to get more and more your hands on everything, and to spend more than you can. Who wouldn't be seduced by the prospect that spending like crazy is a good thing ?

username18333

sr. member

Activity: 378

Merit: 250

Knowledge could but approximate existence.

Quote from: twiifm on January 15, 2015, 02:00:10 AM

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

The theory applies to monetary systems (macro) not some small gambling party.

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

It inflates initially; however, that inflation decreases to nothing over time (and, in fact, “becomes” deflation as the rate whereat coins are lost or made “unspendable” overtakes their production).

twiifm

hero member

Activity: 784

Merit: 500

Quote from: username18333 on January 15, 2015, 01:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

The theory applies to monetary systems (macro) not some small gambling party.

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

username18333

sr. member

Activity: 378

Merit: 250

Knowledge could but approximate existence.

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

twiifm

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I think Krugman said that and he's talking about macro. So he's not wrong but you don't understand economics

nmhh

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lol no, bitcoin just failed.

Foxpup

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Quote from: Elwar on January 13, 2015, 06:29:43 AM

Why are Keynesians always wrong about economics?

The same reason flat-Earthers are always wrong about geography: because the theory is so thoroughly contradicted by the facts that only a fool or madman could believe it.

Elwar

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As the price was rising, all of the Keynesians kept harping about how nobody would spend bitcoins because they would want to wait to spend later when the price is higher, never spending their money.

And yet, for the past year the price has been going down, high inflation, a Keynesian dream. And yet, the spending did not skyrocket.

Why are Keynesians always wrong about economics?

Topic: Were the Keynesians wrong? - page 5. (Read 5582 times)