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.
check this out from Scott Locklin if you haven't seen it https://basicattentiontoken.org/static-assets/documents/token-econ.pdf
ReplyDelete>" 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"
ReplyDeleteFalse.
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.)