/biz/ - Business & Finance

What did Christine Lagarde mean by this?

>"In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money," she said. "The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve."

>"Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays, so I think it may not be wise to dismiss virtual currencies," Lagarde said.

http://abcnews.go.com/Technology/wireStory/imf-chief-tells-central-bankers-ignore-bitcoin-50176592

>>1770142

In a bizarre world where people went insane and started hoarding money indefinitely, then yes that would be bad for the economy. Maybe if they hallucinated and thought they could eat the money?

In the real world, people save rationally. They believe that the investing oppurtunities out there are too risky or don't have a good enough return. Entrepreneurs inevitably figure out how to create better opportunities to coax funds from savers.