The Oil Drum

In previous installments of what is becoming a potted series on economics, Stuart looked at interest, and I talked about demurrage, a kind of money tax that is designed to encourage long term thinking.

Some observers, on seeing the idea of negative interest/a money tax, remark that such a currency would have a hard time competing for users if it were to exist in a free market of currencies as it would be less desirable to hold than a currency that became more valuable over time.

Others point out that it's unlikely such a radical change could be brought about short of revolution. In these uncertain times nothing should be discounted but it is probably more profitable to look at less radical alternatives.