Tuesday, May 2, 2023

Retraction: Incorrect Statement of Inflation

I autism'd the math on millennial inflation. 

I incorrectly asserted the following: "Any time production should cause deflation, it also increases velocity, cancelling the deflation with inflation, and wheat prices remain the same."

When I re-ran the numbers, they did not bear this out. Reality contradicted my theory. I did not think in straight lines. One of my trains jumped a track. Oops.

1 comment:

Alrenous said...

>" This doesn’t increase the value of the SEASHYLL token, despite the Fisher equation of exchange; it simply creates an artificial lack of useful money"

False.

First, what actually happens is that the islanders refuse to use SEASHYLL.

Second, assuming they're somehow brainwashed by idiot economists* into using it, then they will bundle their transactions and nobody will starve to death.

*(This idiot economist has to beat up on even more idiotic economists, in the hope that you get distracted by the delta and don't notice the absolute value.)