> This is actually a pretty serious problem. .. with the modern understanding of deflation. Price is not a problem if the money supply is constant. Just think

> This is actually a pretty serious problem. .. with the modern understanding of deflation. Price is not a problem if the money supply is constant. Just think about it, it is *more goods chasing the same amount money". There will be no way we can have this conversation without that kind of deflation in computer industry. Now, money supply contraction IS painful, but so is hangover. If you have an institution with the ability to inflate the money supply almost at will, don't act surprised if from to time a correction can be in order.