Demurrage vs inflation
Is demurrage and inflation the same?
If both are at 1% a day and today I have 0, tomorrow:
- Under demurrage I'll have
- Under inflation I'll have 0, but that 0 will be worth only 99 of yesterday's dollars.
Either way, I end up with in wealth.
So is there a difference between demurrage and inflation in their effect (end result)? Or is there a flaw with my thinking?
EDIT
I'm not looking for an answer constrained to the example in my question. I'm interested in the question of inflation vs demurrage from the macroeconomic perspective. What would our economy be like if our money had demurrage instead of inflation?
(1)1 Comments
Sorted by latest first Latest Oldest Best
Yes, there's a difference. If you've borrowed 0, then under inflation your salary will (presumably) increase, and tomorrow your debt will only be worth . But under demurrage, you'll still owe 0.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.