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Re:The political case for a blanket cryptocurrency ban by pydry on Wednesday March 31, 2021 @03:54PM (#26652247)
>Target inflation is specifically intended to promote consumption.

No, it's intended to erode debt. Inflation is effectively a transfer of wealth from creditor to debtor.

Re:The political case for a blanket cryptocurrency ban by api on Wednesday March 31, 2021 @06:15PM (#26653822)
It does do that, but the primary purpose is to push investment. To protect money from inflation you have to put it to work. Wealth is a verb, not a noun.
Re:The political case for a blanket cryptocurrency ban by isolli on Thursday April 01, 2021 @02:58AM (#26657382)
It also erodes real salaries, which is a useful way to adjust salaries in a world with sticky prices (where nominal contracts are not easily adjusted).
Re:The political case for a blanket cryptocurrency ban by nradov on Wednesday March 31, 2021 @05:01PM (#26653138)
No that's not how it works in the typical case. Lenders set their interest rates based on expected future inflation rates over the term of the loan. Debts only really get eroded when interest rates are fixed and actual inflation greatly outpaces expected inflation. Like in the hyper inflation that occurred in Zimbabwe, Venezuela, Serbia, etc.
Re:The political case for a blanket cryptocurrency ban by pydry on Wednesday March 31, 2021 @05:43PM (#26653514)
Interest rates for most debts are fixed. They are determined by supply and demand, much like any other price.
Re:The political case for a blanket cryptocurrency ban by nradov on Wednesday March 31, 2021 @07:29PM (#26654575)
And the supply is based on expectation of future inflation.
Re:The political case for a blanket cryptocurrency ban by pydry on Thursday April 01, 2021 @07:59AM (#26659345)
Partially, yes.
Re:The political case for a blanket cryptocurrency ban by murftown on Wednesday March 31, 2021 @04:43PM (#26652896)
Sure, but what debt does the average person own which is eroded? The money in their bank account.
Re:The political case for a blanket cryptocurrency ban by dnautics on Wednesday March 31, 2021 @04:56PM (#26653078)
No, it's a transfer of wealth from saver to debtor, reminding you that the biggest debtors are also creditors.