Balaji Srinivasan

And, you know, there was some real math that came out of it.

But for the most part, their premises were wrong.

So their conclusions were wrong.

OK.

And Keynesianism, the fundamental premise of Keynesianism is wrong, which says that it gets inflation deflation point.

Basically, it's.

Keynesianism says rapid inflation is bad, but deflation is also bad.

Why?

It would cause hoarding.

So therefore, a gradual amount of inflation, what they call the New Zealand 2% target every year, is good.

Because that allows the money supply to inflate, to accommodate for growth, and so on and so forth.

And what they mean by hoarding, by the way, is if your unit of account, let's say your dollar became more and more valuable every year.

OK, eventually you'd get to the point that to buy a house, you would have to be one whole dollar.

OK, and you'd have to you wouldn't be able to break it up into pieces or be one cent per house.

OK, and then they'd say, oh, that cent is too valuable.

Therefore, you know, we need to actually devalue it.

So now it's liquid enough that you can trade.

Right.

This may have been an argument in the past, but it's not actually an argument in the present, because in the digital era, you can just add a decimal place.

Right.