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42 sats \ 4 replies \ @Undisciplined 18 May \ parent \ on: AI Making You More or Less Productive? (Money Stuff, Matt Levine) AI econ

Inflation is a matter of the usable supply.

Shipwrecks back in Spanish times were deflationary, even though the gold still existed.

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82 sats \ 3 replies \ @denlillaapan OP 18 May

Ok, would you say QE1 in 2008-2010 was similar not inflationary? (Since the new base money was trapped on the Fed balance sheet via IOERs)

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42 sats \ 2 replies \ @Undisciplined 18 May

Maybe in hindsight I would say that. I certainly didn't say that at the time.

Was that new base money unspendable (I know it was largely unspent)?

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69 sats \ 1 reply \ @denlillaapan OP 18 May

No, just no incentive to. High value on liquidity + safe Fed interest payments juicier than anything available elsewhere.

Covid is the nice counterpart: like then, QE 1 could have leaked into real economy, didn't.

That looks like hodled/lost coins to me

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42 sats \ 0 replies \ @Undisciplined 18 May

Ok, so it’s more like the way hoarding is deflationary.

Either way, I think it’s about supply in the normal economic sense rather than the stock sense.

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