I think the non-inflationary currency will lead to the exactly same problem as the one in 1970's. The wealth will be growing faster than currency could keep up, and there would be no good means for exchange. It will create huge shocks. (2008 crisis was nothing compared to late 70's one).
It is also vulnerable to mining and extraction process improvements. The moment somebody has a cheap process to get gold from gold ore (or quantum computer mining bitcoin) the currency goes to hell.
I think cycles are natural, even desirable part of economic process.
I think the non-inflationary currency will lead to the exactly same problem as the one in 1970's. The wealth will be growing faster than currency could keep up, and there would be no good means for exchange.
It will create huge shocks. (2008 crisis was nothing compared to late 70's one).
It is also vulnerable to mining and extraction process improvements. The moment somebody has a cheap process to get gold from gold ore (or quantum computer mining bitcoin) the currency goes to hell.
I think cycles are natural, even desirable part of economic process.
This is an awesome video that I've shared a few times before myself. This is a big part of why I'm a believer in non-inflationary currencies like gold or bitcoin too. It gets rid of the cycles so the economy can follow a straightforward productivity line. It's theoretically the same result in the long term but without much of the manipulation (and corruption) that comes from the lending cycle. Right now everyone borrows money just to keep up, because if you don't then you don't get the benefit you need in the upturn to cover your losses in the downturn. So everyone just stays on this same roller coaster and a lot of otherwise productive people get left behind because they didnt understand how to handle their money. Those people's losses become the bank's gains even when, as I said, the banks don't actually contribute to the economy in the long term.
Tldr: banks are basically just leeches and we don't need them.