Nick Szabo  🔑

Another category of indicia of scarcity was (and still is, in the art world) indicia of artistic skill and effort -- the improbability of the artistic skill involved and time needed for that rare skill to produce a work of art or craft.

Cultures that imported European collectibles or money eventually adapted their indicia, their methodologies for assessing and judging scarcity, to the new materials and techniques, but not before usually radical disruption to and inflation of their native system of collectibles.

Most modern economists think this an acceptable, or even too low, rate of inflation. But many then considered it unnatural & dangerous. Very-long-term contracts, such as centuries-long or perpetual real estate tenancies, now imposed hardships & became embroiled in disputes.

Agree that 0% inflation is perfectly fine (i.e. 2-3% increase in money supply) but during the 1870-1900 deflation, did people take nominal wage cuts? I could certainly be wrong, but i'm worried about the money illusion w/ a fixed base currency. Maybe @GeorgeSelgin can elaborate?

The deflation of that era (it ended in 1896) was roughly in line with productivity growth. So: no secular nominal wage deflation.