Quote from: K-Dog on Jan 23, 2024, 06:03 PMCan fiat money work in a steady state economy?
Well, first off, the economy isn't steady state since the resources the economy depends on are depleting. At the same time, the population that depends on those resources is still increasing. So there is a constant negative change of less per capita available.
As you know, I'm no fan of any money at all, but under these conditions I think demurrage money probably reflects the reality the best. A demurrage charge of perhaps 3% would increase the velocity of money through the economy and encourage the liquidation of assets and price discovery, which is a really big problem right now. Mispriced assets are everywhere, from real estate to stocks, bonds and commodities.
Doubtful you could get a demmurrage currency issued by any current goobermint though, so it's a moot point.
RE