[14035] in Cypherpunks
Re: The American money capture
daemon@ATHENA.MIT.EDU (Russell Nelson)
Mon May 23 07:18:00 1994
Date: Sun, 22 May 94 23:41 EDT
From: nelson@crynwr.com (Russell Nelson)
To: cypherpunks@toad.com
In-Reply-To: <199405011708.KAA16423@jobe.shell.portal.com> (message from Hal on Sun, 1 May 1994 10:08:14 -0700)
Date: Sun, 1 May 1994 10:08:14 -0700
From: Hal <hfinney@shell.portal.com>
(Also, note that a constant money supply in a growing economy is effectively
deflationary.
Below, you call this a "view". I call this a clear fact, and feel
sorry for anyone who doesn't immediately see it also!
The money supply must increase at least as fast as economic
growth or it will serve as an active brake on the economy, IMO. I don't
know what economic school this view comes from, but I first heard it from
Milton Friedman.)
They thought that the inflation they saw was due to psychological
factors, people not trusting the bank, or greedy merchants trying
to take advantage of the public. (These arguments were echoed in
the 1970's and 1980's, but they have of course been widely
discredited now. The issue was far less clear in 1850.)
Discredited but still bandied about.
-russ <nelson@crynwr.com> ftp.msen.com:pub/vendor/crynwr/crynwr.wav
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