Sarcasm acknowledged. If it were possible, what do you think the world would look like if inflation were 0% for a few decades? I hope this is a fun conversation. If not, I’ll settle for another joke, amusing anecdote or icy silence with a judgmental stare.
“You obviously know nothing of how the real world works.”
Was going to type a whole bullshit essay with random made up stats and facts to make your idle question look malicious and uninformed, but I just cant be arsed. Can we just pretend I was a cunt for mild chuckles?
I got the same macroeconomics education as a lot of people. I get why 2% inflation is a common target. I do, however, like thought experiments using extreme values.
I wouldn’t say it’s a particularly idle question by social media standards. Admittedly, that’s a pretty low bar. Perhaps I am uniformed. I’m definitely not being malicious.
Can we just pretend I was a cunt for mild chuckles?
Time preferences would be lengthened due to lower interest rates. People would save instead of taking on more debt. It would be harder to get a loan, but your real interest rate would be lower.
Instead of deliberately encouraging consumption, everyone would buy less stuff. This would be terrible for “the economy” (rich people) but great for people who live in the environment.
I’d enjoy the topic at a less busy time of life. I’m being kept tired, distracted, and poor lately as a systematic form of oppressive totalitarian rule - and that’s just from my kid!
At negative inflation there is no incentive to spend your money because is becomes increasingly valuable the longer you hold it. With high inflation, there’s incentive to spend because the longer you keep your money in the mattress the less it’s worth to you.
At zero it just is, but that’s less than the usual goal of a couple percent of inflation year over year.
The assumed reason for inflation, as I understand it, is that on one hand things devalue over time and on the other we build our system around infinite growth and rewarding innovation (many asterisks here…)
During the Middle Ages, neither statements were considered true, the world was considered stagnant and there was virtually no inflation. That was before the banking system - so with 0% inflation i would expect the banks to collapse…
And then… I don’t know! Stuff is hard and economics harder…
Same. I got one of those large dispensers like dentists use and the corresponding bulk rolls of the nice ribbon style floss to fill it. I only ever use the regular sizes for traveling now. Keeps costs and plastic waste down. I don’t have to think about it for years at a time. It’s a small thing, but I like it.
Sarcasm acknowledged. If it were possible, what do you think the world would look like if inflation were 0% for a few decades? I hope this is a fun conversation. If not, I’ll settle for another joke, amusing anecdote or icy silence with a judgmental stare.
“You obviously know nothing of how the real world works.”
Was going to type a whole bullshit essay with random made up stats and facts to make your idle question look malicious and uninformed, but I just cant be arsed. Can we just pretend I was a cunt for mild chuckles?
Bullshit essays for a joke are one of the few legit use cases for LLMs imo
I can’t believe you’d say that about OPs mother. Downvoted, reported, enjoy ur ban kid.
In their defence, they raised several valid points about the musical harmony between My Little Pony and eugenics that made my heart swell
I’m trying really hard to interpret this, but I feel like I’m missing some context.
there isnt one
Okay, that’s pretty funny.
Did you just insult them? Counter-ban
But what if they’re actually a kid?
Pretty sure that’s actually a crime since kids can’t be on platforms, which is why companies ban you if they find out you’re under 13.
I got the same macroeconomics education as a lot of people. I get why 2% inflation is a common target. I do, however, like thought experiments using extreme values.
I wouldn’t say it’s a particularly idle question by social media standards. Admittedly, that’s a pretty low bar. Perhaps I am uniformed. I’m definitely not being malicious.
Time preferences would be lengthened due to lower interest rates. People would save instead of taking on more debt. It would be harder to get a loan, but your real interest rate would be lower.
Instead of deliberately encouraging consumption, everyone would buy less stuff. This would be terrible for “the economy” (rich people) but great for people who live in the environment.
I’d enjoy the topic at a less busy time of life. I’m being kept tired, distracted, and poor lately as a systematic form of oppressive totalitarian rule - and that’s just from my kid!
Fair enough. Thanks for taking the time to respond.
Hiyo! I really got a kick out of that.
You stay brave, Little Hitachi Wand.
Edit: Forgit tu spel gud
You did say jokes were one of the options, and I didn’t get nearly funny enough to cope with my trauma by skipping a chance to get silly.
I hear that. I take every chance I get.
The world economies slow down probably.
At negative inflation there is no incentive to spend your money because is becomes increasingly valuable the longer you hold it. With high inflation, there’s incentive to spend because the longer you keep your money in the mattress the less it’s worth to you.
At zero it just is, but that’s less than the usual goal of a couple percent of inflation year over year.
Or maybe I’m full of shit idk.
No, that sounds about right. Deflation is pretty consistently devastating.
The assumed reason for inflation, as I understand it, is that on one hand things devalue over time and on the other we build our system around infinite growth and rewarding innovation (many asterisks here…)
During the Middle Ages, neither statements were considered true, the world was considered stagnant and there was virtually no inflation. That was before the banking system - so with 0% inflation i would expect the banks to collapse…
And then… I don’t know! Stuff is hard and economics harder…
Thanks for the response. You gave me a lot to think about, so I opened the Wikipedia article on fiat money. The part on history was pretty cool:
Link
🥶
Most cryptos are deflationary. That seems to cause hoarding.
Having no inflation sounds good to me if paired with no growth in population, but I know little about economics.
I wasn’t even considering crypto. Thanks for the insightful example.
That’s an interesting point. I wonder what it would look like if inflation were targeted to population growth percentage rather than a fixed number.
You’re welcome! I like my floss to stay the same price.
Same. I got one of those large dispensers like dentists use and the corresponding bulk rolls of the nice ribbon style floss to fill it. I only ever use the regular sizes for traveling now. Keeps costs and plastic waste down. I don’t have to think about it for years at a time. It’s a small thing, but I like it.
Judgemental stare
I felt that like: ಠ_ಠ