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208 sats \ 1 reply \ @denlillaapan 6 Jun \ on: Pleb Economist #7: Talking Bitcoin with academic economists econ
Awesome report, and these convos are always interesting as a check on our beliefs.
The standard thing you hear is: "Who would buy anything if they expect prices to go down later?" But these guys are smarter than that. Instead, they argued that in an inflationary environment, you can pay unproductive workers less in real terms simply by not raising their wages..." (Nominal rigidities)
True, and so weird for economists to argue. This is a psychological point, or a calm-the-masses point, not an economic one. Rigidities are not a feature of the world, but a remnant of 20th century business practices. No reason to believe they'd be particularly binding in a bitcoin world.
On volatility, I'll dig up what I quoted when reviewing Larry White's book: it's really not a sensible, economically literate observation — measuring a money's properties by its de-/premonetized behavior. If these guys think about it for two seconds, they'll agree.
Beautiful one-liner. I'll steal it
Bitcoin is a ledger book of monetary transactions that no one controls, anyone can write to, and yet somehow everyone trusts." I
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62 sats \ 0 replies \ @SimpleStacker OP 21h
True, and so weird for economists to argue. This is a psychological point, or a calm-the-masses point, not an economic one.
I know, right? I definitely wasn't expecting that argument. But I am glad that they didn't give me the "people won't spend money" spiel.
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