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Money that sits idle should cost more than money that creates opportunity

medium.com

4 points by rotbart · 7 comments

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zahlman

Welcome back to HN. Please check out https://news.ycombinator.com/item?id=47340079 :

> In Comments: Don't post generated text or AI-edited text. HN is for conversation between humans.

abstractspoon

Hmm. Authors starts with an unproven phenomenon and then bases the rest of the article on assuming it was proven

  • rotbartOP

    I'm trying to make the case for this model of economy, not claiming it is proven. What in economics is ever truly proven?

xchip

You have discovered inflation....

  • rotbartOP

    Clearly, you have not read the article.

    • gus_massa

      From https://en.wikipedia.org/wiki/Federal_Reserve

      > Conduct monetary policy by influencing market interest rates to achieve the goals of [...] an inflation rate of 2 percent per year on average [...]

      The idea is to discourage people/companies to store a truckload of cash like Scrooge McDuck. So it's better to invest it or put it in a bank where the bank will not store it but lean it so it's invested. The end result is to encourage the money to flow, as suggested in the article.

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