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@ ManyKeys
2025-05-16 06:27:18
Scenario 1 is more money chasing fewer goods. This leads to inflation where future cash flows must be discounted to account for the loss of value in the currency over time.
Scenario 2 is more goods chasing fewer money. This leads to deflation where future cash flows are discounted less — or even valued more through premiums — because the currency gains value over time.
The only thing that matters is sound economic calculation. As long as the rate of monetary change is known and stable, people can adjust their decisions accordingly. The real difference is not in the math but in the behavior each system incentivizes. One rewards speed and spending. The other rewards patience and productive investment.
You must be a Keynesian to paint this as you do. A Keynesian anti statist 😂