> You buy the computer when you need the computer. But this isn't a general rule for other goods and services so they have to devalue the currency to encourage

> You buy the computer when you need the computer. But this isn't a general rule for other goods and services so they have to devalue the currency to encourage people to not save? Because monetary inflation is basically a tax on savers. > In a deflationary economy that $180k loan at 3% would have a real interest rate closer to 5%. Which is why they would adjust the interest rate to take deflation into account. I can see this argument in today's economy since inflation is built into everyone's calculations and borrowers would be hurt if they couldn't rely on inflationary pressure to adjust the interest rate downward but that doesn't prove that deflation is inherently bad, only that people are capable of long-term economic calculation.