I don't understand what you mean. Are you just saying "the way I explained it is a quick way to communicate the sort of problem I have in mind"? Your mention of inflation confuses me because neither of us had mentioned it before.
I didn't mean to say "the value of money = desire to hold it", which I think would probably be wrong or ill specified. A price is the rate at which you can trade one good for another good. Money has lots of different prices (2$ per lb apples, $300 per oz gold etc., $50 per hour of massage etc.) since it participates in lots of different markets, whereas most goods only participate in one market (where they can be traded for money). You can talk about a "price level", but coming up with a precise and useful definition is a little tricky.
I just meant that if for each agent, the marginal utility of money rises (or you add more agents) and the quantity of money does not rise then at equilibrium the price of money will have to rise across the board (deflation). I was saying that your example of economic growth leading to more transactions is a special case and trying to explain that broader framework.
There are many reasons why people's general desire to hold money might rise or fall, for example if a checking mechanism is introduced then people will need to hold less money to conduct their transactions (reduced desire to hold money) or if there's a global financial crisis, people might say "holy shit, I can't trust any of these assets, I'd best just hold money" then people's general desire to hold money would rise.
Are we communicating better?
Also I categorised this as "inflation talk", because it was wheeling out a few of the concepts behind the question "what are the causes of inflation?"
I think there's something about macro that makes me communicate badly.
Less Wrong used to like Bitcoin before it was cool. Monthly threads popped up around the same time a pricing bubble brought mainstream attention last year. When the bubble popped, and price continued to deflate, discussion on this site stopped entirely. Was there a change of sign in the social status of the topic, is the topic fully explored, or has there simply happened nothing of interest over the last year?
If you are not familiar with Bitcoin, here is one intro I happen to like.
Kaj Sotala lists a number of previous threads on the topic:
Less Wrong seems like a good place to discuss recent developments, if one does not want to suffer the inanity of the officially unofficial forum. If you are not longer interested in Bitcoin, perhaps send your remaining balance to the Singularity Institute?