Which currency system do you think is best?

[tomdemaine]

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say we have cummulatively produced, as an economy (i.e. the gold industry) some amount of gold G. G is now the total money supply. every year the economy grows by Y and productivity increases by P so G should grow by Y-P. so lets let g=Y-P.


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I still don't understand where this should comes from. I fully admit that despite doing an economics degree I'm relatively dense about this stuff but if you take away the assumption that deflation = bad (which I think there are pretty good arguments for doing) then there is no "should" to the amount of money in the economy, just like there's noone saying there should be X number of trainers produced per year.