It only matters to the extent that many existing systems are built on the assumption that the economy grows over time... e.g. taking on a 30y mortgage. If envir

It only matters to the extent that many existing systems are built on the assumption that the economy grows over time... e.g. taking on a 30y mortgage. If environment becomes deflationary, then it becomes a deathtrap. I think nominal GDP targeting is pretty bad policy though. Deflation can be a great thing for people, if its focused in the right areas. e.g. imagine population is cut in half overnight... suddenly housing becomes very cheap and affordable, even in previously desirable areas. Of course, need to deal with all the ramifications and second order effects of that (lots of financial instruments would implode as their inflationary baseline assumptions unravel). Debt instruments of all kind become problematic with deflation. At least in their current form. Fortunately the US could toggle on population growth on a whim through changes in immigration policy