A very interesting debate occurs last week between George Selgin and Saifedean Ammous about the concrete management of a deflation economy in case Bitcoin becomes the world’s monetary standard. Juice sumed up the points made by the two sides and adds some context about fractional reserve banking. He also states in his own view how Nash can reconciliate Selgin and Ammous’ views.
This made an excellent excuse for me to read some of Selgin’s work, which I have been contemplating for some time now. As he mentionned himself his book Less than zero: The Case for a Falling Price Level in a Growing Economy as a must-read to understand what he means in his debate with Saifedean, I read it first to have a balanced view as I’m already more familiar with Saifedean’s arguments.
I tried to figure things out and see if we should really worry about this kind of deflation, and what we can do about it. Continuer la lecture de Should we worry about deflation in a Bitcoin standard world ?