nico on Nostr: hey... I think inflation creates massive distortion and incentivizes wrong behaviors ...
hey... I think inflation creates massive distortion and incentivizes wrong behaviors
- Most people, in countries like ours, don't have much to save.. so broadly speaking they simply learn that there is no point in saving, you just need to spend in whatever thing as saving money makes no point.
- But I think the worst part of having inflation is that there is no credit. Now with that, you cannot save and also you cannot buy important stuff with credit like houses or cars etc.
People's only choice is to save in USD but USD also loses value on the long run.. if you want to slowly accumulate USD to buy a house in 10 years you will lose a lot of money...
So for most people inflation is just about spending all you have, hope your salary will catch up .. struggle for some time until it's adjusted and then spend again...
- Most people, in countries like ours, don't have much to save.. so broadly speaking they simply learn that there is no point in saving, you just need to spend in whatever thing as saving money makes no point.
- But I think the worst part of having inflation is that there is no credit. Now with that, you cannot save and also you cannot buy important stuff with credit like houses or cars etc.
People's only choice is to save in USD but USD also loses value on the long run.. if you want to slowly accumulate USD to buy a house in 10 years you will lose a lot of money...
So for most people inflation is just about spending all you have, hope your salary will catch up .. struggle for some time until it's adjusted and then spend again...