> Deflation caused both world war one and two. There was no deflation (or inflation, really) prior to World War I. Prior to WWI, most countries pegged their cu

> Deflation caused both world war one and two. There was no deflation (or inflation, really) prior to World War I. Prior to WWI, most countries pegged their currency to either silver or gold at a fixed rate of exchange which meant that inflation was both extremely low and extremely predictable. The "experiment" you're describing (no inflation, no money printing, no deficit spending) basically describes the way all governments operated prior to the early 20th century.