Ragnar Celine
Member
- Oct 10, 2022
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- #81
No contradiction.
People won't hold this "digital currency", how will it protect them from inflation?
OK, once more for the ones who weren't paying attention earlier:
By automatically adjusting payments using a Daily consumer price index.
Payments are indexed to the general price level in terms of the daily index so changes in the inflation rate have no effect on the value of the payments.
Items denominated in daily indexed units have no inflation risk since their real value stays constant over time.
Basically, when prices go up, the amount you pay or get paid automatically goes up to match the price level so you can still buy the same amount of stuff you could before.
They do this in Chile and it works or they would have stopped doing it a long time ago.