What Bitcoin Did The Biggest Lie in Economics | Allen Farrington & Sacha Meyers
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May 4, 2026 
Sacha Meyers, investment manager who studies macro and capital allocation, and Allen Farrington, author and critic of modern inflationary policy, challenge the idea that inflation is necessary. They discuss why the 2% target is arbitrary. They separate harmful credit-collapse deflation from innovation-driven price declines. They debate saving, malinvestment, price signals, and signs of a monetary transition.
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Two Percent Is A Made Up Target
- The 2% inflation target is essentially arbitrary and originated from a throwaway comment rather than rigorous science.
- Allen Farrington and Sacha Meyers trace its persistence to Keynesian orthodoxy and lore, not empirical derivation.
Paradox Of Thrift Underpins Inflation Policy
- Keynesian support for low positive inflation rests on the paradox of thrift: people must be coerced to spend now to sustain demand.
- Sacha Meyers argues this assumes spending is the primary path to growth rather than saving-driven investment.
Two Types Of Deflation Matter Greatly
- There are two kinds of deflation: credit-crunch deflation caused by a fragile debt system, and productivity-driven deflation from innovation.
- Policy treating all deflation as bad protects one type while killing the other.
