Preserving the value of treasury over time - Deepstash

Preserving the value of treasury over time

Three scenarios for CEOs:

  1. In a deflationary currency environment, the prices of goods and services will decline, and the currency will appreciate. If I keep the money and wait, the value of my money will accrete. 
  2. If monetary expansion equals economic growth, e.g., banks print 2% more currency, and the economy grows 2%, then treasury will remain stable.
  3. In a stagnant economy, the currency can rise to 5% a year. But if the economy grows less, the prices appreciate for anything scarce like an original Picasso, but will not appreciate for mass-produced goods/services, such as copies of a Picasso.

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laford

Marine Scientist

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