Re:New Economic Challenges and the Fed's Monetary Policy Review
by logicchains on Friday August 28, 2020 @01:08AM
(#24301538)
> Fiat currencies are not ideal but are the best known currency tool to date.
By what metric?
>Finally, the ability go debase (I assume you mean devaluating) a currency is (arguably) a desirable characteristic. During crises, responsibly devaluating a currency can help a country's economy.
I'm skeptical that any benefit this brings outweighs the catastrophic damage it causes when misused. E.g. Weimar Germany, Zimbabwe.
Re:New Economic Challenges and the Fed's Monetary Policy Review
by tupputuppu on Friday August 28, 2020 @04:01AM
(#24302443)
As described in the article, we are living in a period known as the Great Moderation, a previously unforeseen time of financial stability, low unemployment, and lack of Major depressions. Bringing up autocratic developing countries isn't a great counterexample to the level of welfare we've been privy to in the developed world.
I commonly hear that blockchain-based currencies can be a good replacement for fiat currencies. But current examples of blockchain-currencies are either company-sponsored or community-based. This again puts a big weight on a single actor. I'd rather trust the admin of money to a government than a company or a community of anonymous economists/technologists.
Finally, the ability go debase (I assume you mean devaluating) a currency is (arguably) a desirable characteristic. During crises, responsibly devaluating a currency can help a country's economy.