> a policy where either the schedule for monetary creation was publicised several years in advance
This is like mandating a city’s thermostat ratings—in degrees on the dial, not temperature—be set months in advance. The source of the variation isn’t the thermostat. It’s the weather.
> idea that it is proper to adjust the rate of monetary creation based on the market is suspect
It’s possibly the most empirically supported finding in macroeconomics. Fortunately, there is never a shortage of populists or anarchy providing counterexamples.
> the system is designed to penalise anyone who tries to preserve wealth in actual cash
Yes, we separated the transactional (deposits) and store-of-value (Treasuries) functions of the U.S. dollar decades ago. Storing value in cash is literally using money wrong.
> It’s possibly the most empirically supported finding in macroeconomics.
... he asserts confidently while providing literally no examples or counterexamples. Or explaining the analogy - I don't adjust my thermostat very often, I know the temperature that I like, so setting it years in advance is feasible although weird. And governments mandating thermostat settings is a value-destructive idea - much like governments mandating that people use a specific currency (the argument there seems to be that it is necessary for the tax system to function, which is fair, but the mandate isn't value-creating).
> Yes, we separated the transactional (deposits) and store-of-value (Treasuries) functions of the U.S. dollar decades ago. Storing value in cash is literally using money wrong.
"We've implemented this policy on purpose" isn't a valid argument. A year or so ago Sri Lanka implemented a ban on fertiliser. They then had a food crisis because the policy worked as designed. The argument should be "here are the pros, here is the argument/evidence that the pros outweigh the cons". Deliberately doing something stupid just makes it more stupid.
This is like mandating a city’s thermostat ratings—in degrees on the dial, not temperature—be set months in advance. The source of the variation isn’t the thermostat. It’s the weather.
> idea that it is proper to adjust the rate of monetary creation based on the market is suspect
It’s possibly the most empirically supported finding in macroeconomics. Fortunately, there is never a shortage of populists or anarchy providing counterexamples.
> the system is designed to penalise anyone who tries to preserve wealth in actual cash
Yes, we separated the transactional (deposits) and store-of-value (Treasuries) functions of the U.S. dollar decades ago. Storing value in cash is literally using money wrong.