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incentive to make any investment at all is drastically reduced

because prices fall when you are just sitting on your money

I'm not saying there's ZERO economic activity.

obviously there will tx for essentials.

but theres a spectrum

and erring completely on the other end of that spectrum is equally stupid.

ideally

the number of monetary units would generally track with economic growth and there would be stable prices.

The incentive is to make investment in things you know will outperform the deflationary effects of technology. Something that is true today.

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under *highly inflationary conditions

investment becomes gambling.

there is a spectrum.

its easy to make a good case for monetary inflation that follows economic growth.

that would be the safest and likely the most prosperous condition. its just impossible to achieve algorithmically.

but any sane and known monetary policy would solve most of these problems.

unfortunately a hard cap on the number of monetary units is a knee jerk reaction to inflationary insanity.

it is NOT sane monetary policy.

"2%" is what has caused the gambling... You are the one being ignorant.

its not 2%, and nobody believes it is or has been

so no. it isn't 2% inflation that has caused the degenerative environment.

Any inflation at all is what create malinvestments.

no. that is incorrect and

except for Bitcoin maxis online

nobody thinks that.

because economic activity (generally) also inflates.

in a flat or downturn I would generally agree tho.

so I would guess between 0 and 1% is the sweet spot.