Would the ideal currency have a fixed supply or a small amount of inflation?

Yea, i'm retarded, but gib an objection.
Just trowing ideas out there, you know?
You mean that there would be a problem in trading between criptos inside the country?
How tho? Germany can trade with Canada with the USD.
Same system here.

If you peg it on some real resource like oil, gold, or silver, it should scale with population. So let's say you have gold supply X1 and population X2, the ratio of X1/X2 would determine the average value of currency per person if backed by that resource.

Yes

I think closest to small inflation resources are gold. If you need currency you should look into countries with minimal export. According economic theories their currencies should be more stable than others

Read hayek and friedman.

Even better would be without export.

How are people supposed to save for retirement if they can't save? Do you think people should just work until they die?

To actually answer your question, the ideal currency depends on who your trading partners are, whether you are dependent on importing or exporting and to whom, and what your needs are in terms of fighting inflation vs fighting unemployment.

This is like econ 301-401.

Also everyday consumer goods should be made inside the country without dependencies on others countires export or grace

Read "National System" of political economy by Friedrich List. His ideas helped the German and US economies pump big time some time before WW1. He helped introduce the German Customs Union and made Adam Smith fanboys around the world(including Germany) seethe.

an ideal medium of exchange would be 100% backed by its own intrinistic value

intrinsic value is a meme.

Restrictions on imports and exports decrease ithe quality of life of the citizens. If the purpose of the polititians is to do what's best for the people, import/export restrictions are bad.
There's no such thing as intrinsic value. Value is determined by the ends the good fulfills. Money is as valuable as the ends the things you could buy with it could fulfill.

It gives people a reason to buy goods from their neighbors. This reduces costs that the middlemen put on the product as well as reducing shipping costs. It can be a good thing if used in the right situations, especially if your nation is a lot less powerful and industrious. One of the reasons Rwanda is one of the few places in Africa where it's safe to walk almost anywhere is because they banned the importation of used clothes. They are the only east African country relying on themselves to make their own clothes rather then wearing old Nike and Adidas shirts shipped from New Jersey.

Why?

Restrictions on imports increase unemployment and increase cost of living. I can't see any advantages. The only way you're going to import something is if you export something. It's a trade. Why is it bad if people make a living producing goods to export, then buy imports?

can anyone dispel the claims that a fixed supply causes monetary disequilibrium over time?

By investing obviously.

Christ lol talk about unhelpful

pension system (yes it's a scam, but it answers your question)

You can't expect everyone to be a professional investor. Especially with investments being as volitile as they are right now. That's not a safe way to save for retirement.

that's why people put their money in the funds

Kill self

the ideal currency would have tail emissions

did you just repost this from /r/goldandblack

If the funds are based on risky investments, the funds are risky.

that's why there's a science of risk management and portfolio management

There needs to be some level of inflation in order to encourage people to invest their money rather than sit on it, I'm not saying it's foolproof but the economy runs on investment and inflation puts earners/savers feet to the fire in order to do that.

How is the average person supposed to distinguish between good infestment funds, ponzis, and incompetent investment funds that are just riding a bubble? If they're capable of picking a good investment fund, they might as well just invest themselves.

People are encouraged to invest by the possible return. There doesn't need to be inflation to encourage investment. People always want more.

> ponzis
intense audit. barely anyone audited madoff, that's why he managed to get away with his shit for so long. also insurance

> incompetent investment funds that are just riding a bubble
audit + insurance

> good infestment funds
the ones that weren't busted by audit. I'm no expert but I think they represent the majority.

> If they're capable of picking a good investment fund, they might as well just invest themselves.
in some cases, sure why not. but I think people would naturally want to pass this risk to people who specialize in this

also I think there might be a state-run fund alongside with private ones

it's more about spending than about investing. is correct

Who cares if the markets are risky right now? 80% of the population isn't at retirement age. PLUS if we keep a steady inflation and the velocity high we can employ more people including the children of retirees and they can pay people to take care of retirees.

Saving money is for chumps. Invest well and let the rest sort itself out. Ideally in this type of system the government pays for healthcare because healthcare is legitimately the only good reason to hold a fat stack of cash otherwise there's 0 point.

This question is complicated to the point that you are guaranteed to lose against the hindsight best choice at some point if you all in your hypothetical ideal. For example, If you’re honest, you will admit that fiat currencies completely outcompeted the former sound money ideals, gold and silver.
Extending from this, the llogistics of resource allocation ensure that there are localized wins for most currency designs. Your job is to invest in the circumstance that lead to those localized wins.

>Saving money is for chumps. Invest well
these are the same things. saving money is essentially investing in cash

> because healthcare is legitimately the only good reason to hold a fat stack of cash otherwise there's 0 point.
if you holded shitcoin XYZ and you have emergency why couldn't you sell it for fiat in seconds? that's not a reason. but there are real reasons, like diversification of your assets

> you will admit that fiat currencies completely outcompeted the former sound money ideals, gold and silver.
nobody was asked if they want to use money backed by nothing. there wasn't a competition

>nobody was asked, there wasn’t a competition
You think that competition is voluntary and transparent? You expect a guy starting a new business to go up to his entrenched competitors and say “E-excuse me sir, would you mind if I pitch my service to your customers?” Give yourself a break.

>You think that competition is voluntary and transparent?
I think what we define as competition is transparent. voluntary has nothing to do with it

> You expect a guy starting a new business to go up to his entrenched competitors and say “E-excuse me sir, would you mind if I pitch my service to your customers?” Give yourself a break.
I don't and it has nothing to do with my point. If government forces us to eat shit for breakfast it doesn't mean shit somehow "outcompeted" normal food and certainly doesn't imply it's somehow better

>investing in cash
And why would it be a good reason to invest in strips of paper that are only a tool for measuring transactions? By all means have liquidity on hand but no one or any economy should be encouraging people to invest in the currency itself because it becomes a self defeating circle jerk and ruins the whole system for everyone.

yes

lol l2r you absolute faggot

the best solution would be human extinction.

the current moment is a perfect illustration. if all assets are falling you want to sell them. this is essentially investing in cash, longing cash.

> no one or any economy should be encouraging people to invest in the currency itself because it becomes a self defeating circle jerk and ruins the whole system for everyone.
could you elaborate it?

like the state run TSP (military retirement account) that ran out of money when people in houston took emergency withdrawals for hurricane harvey? That kind of state run fund?

Because currency derives it's usefulness from being able to be used in transactions but if everyone hodls their stacks of cash then we run out of money to conduct actual business. And sure at first you might realize a jump in value of your cash but if the trend is systemic then the general market will abandon your currency in favor of another more available one and now the currency is worthless because it's no longer being used as a tool for transactions.

> if X1 failed it means every Xn will always fail
private funds don't fail or what are you trying to say here?

> currency derives it's usefulness from being able to be used in transactions
the cash you hodl is still able to be used in transactions. this quality of it doesn't go anywhere if the cash is holded. this quality is always potential

> but if everyone hodls their stacks of cash then we run out of money to conduct actual business
this is impossible, some amount of money is always going to be in circulation and prices will just adjust to this amount

> then the general market will abandon your currency in favor of another more available one
total bullshit. if inflationary = available then why isn't zimbabwe dollar the most popular currency in the world?

who brainwashed you into all of this?

>ck hoarders spend your money you greedy niggers. Keep the velocity high!
The fact that kikes and their golems (you) want an inflationary currency in part to force everyone to invest (no matter how bad it is for them) should be widely known.

I agree with this so probably my opponent deserved this (You), not me. Fuck kikes and their inflation and their you must consoom and live paycheck to paycheck to make us all rich by producing useless shit for you.

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So we have a disagreement about definitions. Think about it this way, the nascent fiat economy, at first a small collective of scheming Jews, found a way to steal all of its competitors’ customers. It doesn’t matter what your definition of competition is, they ended up with the customers and their mitts on the productive capacity of the entire world. Their currency, as flawed as it is, presided over and contributed to the most rapid periods of growth in history. The fiat economy effectively won against the best sound money economy of its day, and people who invested in the opportunities that it created, most of which involved exploiting the inflation mechanism, became disgustingly wealthy. I’m not a proponent of fiat by any means. I’m telling you not to be an ideologue so that you can figure out the opportunities that currency with x,y,z parameters present.
Quality post, thanks user.

>this quality doesn't go anywhere if you hodl
Wrong. If you don't use it you lose it. If the quality isn't being availed of it might as well not even exist. Unrealized potential is worthless to the actual economy where business is going on everyday.
>this is impossible, some amount of money is always going to be in circulation and prices will just adjust to this amount

Part of the reason the stock market crash turned into a Great Depression was because people ran on the banks and hodled all their cash which caused a lack of money supply which led to real supply chain delays which further retarded the real GDP of nations.

>total bullshit. if inflationary = available then why isn't zimbabwe dollar the most popular currency in the world?

Inflationary does lead to many positive things as far as economic growth is concerned. It makes investments in your country cheaper and makes your exports more competitive while making imports less competitive. There's a reason why China keeps the value of the Reminbi so low. The only reason why the American dollar is so popular is 1.) It's reasonably available 2.) It's necessary to have to trade in oil 3.) It has a good reputation for stability and part of this is because it's pegged to an interest rate between 2-5% AND the fed sets hard caps on how much cash banks are allowed to hodl

> It doesn’t matter what your definition of competition is
when you're saying that fiat outcompeted sound money, it does matter. otherwise you can't claim it and it's just that the jews forced us to use fiat money. you can't attribute anything to fiat money just because we use it nowadays

> If you don't use it you lose it. If the quality isn't being availed of it might as well not even exist
what kind of fucked up logic this is? a lot of economic activity and transactions will still be there no matter what. you can go and use your money at any time.
or maybe you're talking about some imaginary world where _literally_ no one ever sells their cash, not even a penny? well this world will never exist

> caused a lack of money supply
this is what you get in an overleveraged economy. it balances out eventually