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I've never understood how deflation could ever be a concern in countries that print their own money. Can you not just print your way out of it every time?
by hcurtiss 5y ago
I've never understood how deflation could ever be a concern in countries that print their own money. Can you not just print your way out of it every time?
- lotsofpulp 5y agoNot if you need to import anything, since you can inflate your currency all you want, but the world will deflate it relative to other currencies.
- whimsicalism 5y agoPolitical constraints around central bank policy. Or really strong deflationary market expectations, for whatever reason.
- blake1 5y agoI know of two examples from the Depression. In Germany, it was a deliberate policy. In France, it was a zealous adherence to the gold standard. I am also bewildered. So many bad effects of deflation.
- throw123123123 5y agoThe problem is that you can get both at the same time: deflation of asset prices and inflation of goods prices.
- imtringued 5y agoPoliticians don't give a damn about deflation. They will tell you how governments must be responsible with their budgets and do debt ceilings and austerity, while simultaneously promising income tax cuts for the rich which they finance by cutting public investment. It'll trickle down.