Okay so as far as I’m understanding it, we have (and also want to have for economical reasons, the amount can be discussed but in general we want that) inflation. Therefore money becomes always less and less valuable, the ice cream will always cost more and more. Can you reverse that process without going into recession/deflation? So will there ever be a point again, at which an ice cream will cost 50ct again (random example)? Can that be reversed by introducing a new currency?
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Yeah. We have inflation. Ideally around 3%.
>Therefore money becomes always less and less valuable, the ice cream will always cost more and more
Yeah, over time. And you always get paid more and more.
>Can you reverse that process without going into recession/deflation?
You kinda lumped two things there. Reversing inflation IS deflation. Literally. By definition. But an economy could grow during deflation. It’s just unlikely.
>So will there ever be a point again, at which an ice cream will cost 50ct again (random example)?
It’s very unlikely. The people who print money aren’t going to stop printing money.
>Can that be reversed by introducing a new currency?
Well sure…. But then the ice-cream cone isn’t 50 cents, it’s worth 50 imaginary internet dollars or something.
(Now, some things DO drop in cost. Like…. long-distant phone calls. Or the price of food. Or 50 gigaflops of computation. And that’s because we’ve gotten better at making stuff. Tech improves the human condition. But that’s not what you’re talking about.)
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