🇳🇱
The Bernie Man Festival. Where a bunch of people get together with other peoples stolen money and instead of effigy they burn the money.
@freemo That's one way to reduce inflation.
Actually if the act of stealing money became common place, then it would devalue the money as an asset and not reduce inflation at all. No one would want money if it was easily stolen as opposed to some other asset that is harder to steal.
A.k.a in classical economics; Supply AND Demand.
Demand curve for money will go down if people think it is is less useful.
Pol Pot's destruction of money has had lasting effects on people's distrust in money, i.e. lowering the demand for cash, cash equivalence and even property that is not mobile.
@customdesigned Oh I knew your point. I am just pointing out inflation effects are more complicated than just supply. If money is being stolen readily and easily en mass (one way tax can be interpreted) then that insecurity in holding money devalues the money in a way that is separate from supply itself. I think that deserves pointing out.
Its also important to note the subtle difference and relationship between wealth (the total utility) and money (a quantity is purely relative but often seen as absolute or fixed)
If the spending is wasteful and counter-productive it destroys wealth while keeping the money supply fixed. Burning money will reduce the money supply but have no net effect on the overall wealth. There are literally cases where burning the money may be better economically than spending it, but its more complex than to say money supply and inflation are the only major factors here.