Bitcoin’s Pre-Determined Disinflationary Monetary Policy
By Stephen Perrenod on ALTCOIN MAGAZINE
After 2024 Inflation is under 1% per annum, forever
Stock-to-Flow, a driver of value, doubles every four Bitcoin years
Easy to calculate in Block Time
The Federal Reserve Manages A Debt-Based Fiat Currency
The inflation in the M2 money supply in the US runs about 5% per year. In the last three years it has increased at a 5.0% rate, and in the past year at 6.0%. You may be surprised because you hear that the Federal Reserve is struggling to push inflation up to 2%. Well, that is for the particular core personal consumption price index that they prefer to follow. But the money supply can grow faster than price inflation because the population and productivity grow even while the monetary velocity (turnover rate) has been dropping in recent years.
The Fed seeks to manage inflation and forward expectations for inflation with interest rates, open market operations, and quantitative easing. The Fed’s monetary policies are set by their seven-member Board of…
