Let’s not lose sight of the fact that achieving ideal price stability (0% inflation) is still theft.
Discussion
ELI5, plz.
Let me try… How about this?
It’s true because the natural state of the economy, driven by technological progress, is deflation. Suppressing this through 0% inflation policies benefits money makers—banks and governments—at the expense of everyone else’s purchasing power.
Granted. nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe argues this effectively in his Price of Tomorrow: technological progress means the marginal cost of production falls to zero.
But, in your scenario how would a central bank manage a 0% inflation rate? That’s the part I need ELI5. Not all prices will fall at the same rate, because not everything sold is produced with technology — and some prices may increase, say, if the value provided or lack of supply for that item or service fetches a higher price tag.
True