@buzzlighter
Weak money encourages people to constantly borrow and invest rather than to save, whether that borrowing and investing make sense or not. Hard money encourages people to save, and to only borrow or invest when it seems like it really makes sense. Monetizing things of utility, such as corporate equity and real estate due to a lack of good monetary alternatives, has tangible negative effects and contributes to unnecessary bubbles. It can increase the cost of things that should otherwise just be for utility (such as single-family homes); it gives large and liquid companies an extra edge over smaller companies; and it slows down the process by which business pricing serves as a method of communicating to consumers and investors what is scarce and what is not, which can lead to a misallocation of resources for prolonged periods of time.
From Broken Money by Lyn Alden.
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