The Sztorcian Complaint

….money intrinsically not subject to inflation… ~

When we interpret that passage with inflation meaning “stable purchasing power” we can understand that bitcoin would not be a fit for Nash's Ideal Money because it is expected to deflationary (its purchasing power increases) and it has no direct stabilizing mechanism.

I suggested the use of an “ICPI” index for the definition of the proper value for an “ideal” money. Here ICPI stood for “Industrial Consumption Price Index” (which would be a sort of index which could naturally be calculated from world market prices).

My position is that the appropriate “target rate” for measured inflation is zero.

Measured inflation but the metric or definition of inflation is with respect to the prices considered. If we consider a BPI (bitcoin price index), or the exchange price with bitcoin…then 0% inflation would mean a stable exchange price NOT stable purchasing power as Paul assumed was implied/implicit.



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