If Bitcoin fans think it's easy for workers to "adjust to a world in which their paychecks shrink, so long as their money grows in value even faster," they need to explain why that didn't happen in 2008-9, or 1930-33! https://reason.com/archives/2018/07/22/bitcoin-standard-ammous-blockchain-gold#comment … @DavidBeckworth @NickSzabo4
Why are these arguments always cherry-picking pseudoscience obsessed by one highly anomalous economic event involving pop of an easy money bubble masking vast war debts, sovereign defaults, huge tax hikes, & tariff wars that make Trump look like throwing a pebble in a pond?
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When others dismiss deflation as *never* being a problem, it is appropriate to point to cases that contradict that facile opinion. You need to consider the whole string before suggesting that I'm claiming that deflation is always terrible--a claim I'm known to have denied. 1/
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Indeed, I'm one of the few economists who has fought an (often very lonely) fight in favor of the possibility of "benign" deflation). https://www.amazon.com/Less-Than-Zero-Falling-Growing/dp/1948647109 … Whether a Bitcoin stnd. would only call for such benign deflation isn't clear.
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George, you mentioned there was a paper your wrote on people adjusting to nominal wage cuts? Any chance you found that? I think the issue here is not so much ALL deflation but the more extreme case of deflation where nominal wage cuts are required
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I entirely agree on your last point, which is one I have made at length in "Less Than Zero." The article you inquire about is here: https://www.jstor.org/stable/40751847?seq=1#page_scan_tab_contents …
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