Bitcoin reminds me a lot of monetarism, where the thinking goes to increase the money supply at the same rate as that of productivity: https://en.wikipedia.org/wiki/Monetarism
I'm not a huge believer in monetarism. It pretty much precludes all aspects of monetary policy save growing the money supply to influence the economy. I think Bernanke and the policy of quantitative easing played a crucial role during the 2008 financial crisis, along with TARP and ARRA, and that would not have been possible if the U.S. dollar physically obeyed the properties of Bitcoin.
A thought experiment: how would an economy run solely on a Bitcoin-like currency behave? And how would it respond to business cycles?
I'm not a huge believer in monetarism. It pretty much precludes all aspects of monetary policy save growing the money supply to influence the economy. I think Bernanke and the policy of quantitative easing played a crucial role during the 2008 financial crisis, along with TARP and ARRA, and that would not have been possible if the U.S. dollar physically obeyed the properties of Bitcoin.
A thought experiment: how would an economy run solely on a Bitcoin-like currency behave? And how would it respond to business cycles?