Dear Central Banks

Consumers tend to cut back on scarce, pricey items while embracing abundant, affordable ones. On the flip side, producers lean towards creating more of the scarce and costly goods and less of the plentiful and inexpensive ones.

This adjustment in behavior often takes time as both sides assess the lasting impact of price shifts.

Efforts to stabilize the system, like adjusting money supply or interest rates, can dampen these signals, disrupting the coordination between consumers and producers.

Atte Satoshi