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No one knows what would happen in an economy based increasingly around a deflationary currency, and there are lots of hints suggesting the outcome could be pretty grim.

This is some macroeconomic myth. Most economies ever have been mildly deflationary. It's inflationary economies that have been experiments (in the literal sense) as perpetuated by centralized authorities to silently confiscate wealth from the poor, sometimes for mendacious reasons, sometimes for 'virtuous' ounes... Most of these inflationary regimes have ended rather poorly.

For a more comprehensive perspective, check out "the great wave" by david hackett fisher (author of Paul Revere's ride), has an analytical span of a thousand years and geographically covers cultures all across Europe. An amazing tome, but surprisingly easy to read.



"silently confiscate wealth from the poor" ... with inflation? That is certainly counter-intuitive, to say the least.

I'd always thought that the way to keep inflation low was to keep everyone poor, thereby increasing the relative value of work.




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