pull down to refresh

What's the Austrian perspective on needing the ability to increase money supply?
665 sats \ 7 comments \ @stack_harder 15 Feb econ
so i was watching this bitcoin university video where Matthew systematically broke down all the nonsense this university professor was spouting
and i thought, what does the Austrian school have to say about needing to have fiat, otherwise we wouldn't be able to grow big modern economies.
I mean this professor was totally shitting on the gold standard, even tho i think it's obvious that a lot of the reasons for failures like booms and bust were banks not having full reserve and just human shenanigans in general.
a comment i thought was quite good Keynesian reasoning; "For an economy to grow we have to increase the METER and KILO to ensure there is enough length and weight to go around".
write
preview
related posts
83 sats \ 6 replies \ @Undisciplined 15 Feb
One of Mises' most famous contributions to economic theory was his explanation for why any quantity of specie (above some threshold of divisibility) is sufficient to facilitate economic activity.
Hayek's Nobel Prize was for his demonstration of artificial credit expansion being the cause of business cycles.
Modern economies do not need fiat, although they may need a medium that is easier to use than gold/silver. What does require fiat are bloated modern states.
reply
41 sats \ 0 replies \ @LibertasBR 15 Feb
Exactly, it’s the State that needs fiat, as it controls and produces its own currency, taking power away from us.
reply
35 sats \ 3 replies \ @stack_harder OP 16 Feb
a classic bitcoin fixes this moment!
when they teach economics these days, do they at least mention the Austrian school, like give it a cursory, oh btw there's also this other school of thought but we disagree with it for XYZ reseaons? or is it just Keysian all the way
reply
32 sats \ 2 replies \ @Undisciplined 16 Feb
It's not explicitly Keynesian, aside from a few topics in macro, but most often the Austrians won't be mentioned outside of a History of Economic thought class.
Most economists who have a familiarity with Austrian Economics would say something like "The core ideas have been incorporated in modern microeconomic theory." and that's partly true.
reply
37 sats \ 1 reply \ @stack_harder OP 16 Feb
interesting. what are some of the worst parts about what's being taught as part of the current curriculum, in your opinion?
reply
14 sats \ 0 replies \ @Undisciplined 16 Feb
It depends on the level. In undergrad, I actually think the content is mostly fine, but it's not very rigorous. Econ departments seem to approach their curricula from a revenue maximization standpoint and they know students don't like taking difficult classes.
reply
26 sats \ 0 replies \ @justin_shocknet 15 Feb
some threshold of divisibility
Yep, the natural state of prices being deflationary means divisibility needs to keep up
I've actually been dunking on the egalitarian scaling cope a lot with this recently, as every scaling proponent is intellectualy dishonest until they ack Bitcoin's indivisibility
reply