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A comment on Freicoin: bitcoin-like currency from the Occupy movement. Parent comment

Re:Freicoin: bitcoin-like currency from the Occupy movement by sp332 on Monday June 25, 2012 @02:25PM (#4157859)
Inflation in the US has been pretty low lately, which does not really encourage investment (relative to hoarding). That's at least partially because huge banks control the interest rates. If someone other than huge banks could control the rate, they could make investment more enticing compared to hoarding.
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Re:Freicoin: bitcoin-like currency from the Occupy movement by highfreq on Monday June 25, 2012 @03:14PM (#4158162)
The primary lever the Fed has to influence inflation is interest rates. Low interest rates tend to increase actual investment, in factories new businesses, etc, and eventually drive inflation up. Increasing interest rates now would most likely trigger a deflationary spiral.
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Re:Freicoin: bitcoin-like currency from the Occupy movement by maaku on Monday June 25, 2012 @03:26PM (#4158229)
To further this logic, demurrage allows the effects of inflation but with naturally low interest rates, reducing the probability of a positive-feedback spiral.
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