Saving and Capital Accumulation One of the key problems caused by a currency whose value is diminishing is that it negatively incentivizes saving for the future. Time preference is universally positive: given the choice between the same good today or in the future, any sane person would prefer to have it today. Only by increasing the return in the future will people consider delaying gratification. Sound money is money that gains in value slightly over time, meaning that holding onto it is likely to
