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RE: More on why decreased inflation equates to a lower token price.

in LeoFinance4 years ago

The amount of tokens in existence does not equal supply. In the context of price discovery supply refers only to items that are placed on sale on the market. I think that you stumbled upon a little dirty secret that governments and those that control the means of production (to use a term borrowed from Karl Marx) already know...inflation is not bad...for everyone. Otherwise, why would they do it?

The thing to take into consideration is that the money supply has to follow the growth of the real economy. Both hyperinflation and hyper-deflation are bad, they are the opposite sides of the same coin.

Inflation is good for those that owe money on a fixed interest rate on a long-term loan...I wonder why governments use debt to finance themselves and why big corporations can get loans at discounted rates? 😃.