I've done some thinking on this topic.
Not so sure a deflationary money is necessarily a bad thing...
Could you elaborate a bit more on what the definite downsides are? I think I know the direction you're going w/ this (delay of spending, economic depression), but would appreciate more of your thoughts
we all know that highly inflationary situations incentivize reckless investment
im thinking that "highly inflationary" is more than a 5% increase on monetary supply *over economic growth*
but the cure isn't to go straight deflationary
because of all the reasons (which are true reasons!)
with a known monetary policy (hard cap or not) a equilibrium will be reached.
i highly doubt that a purely deflationary environment (as with a hard cap on the # of units) is the best equilibrium for human flourishing.
and I think we are already seeing why that is.
