5 ms·
> Deflation being much much worse is a nice joke. Deflation is more of a nightmare than a joke. It basically means the economy has significantly contracted and
by spamizbad 4y ago
> Deflation being much much worse is a nice joke.
Deflation is more of a nightmare than a joke. It basically means the economy has significantly contracted and that wages are going to plummet across the board. This leads to a massive spike in debt defaults.
- sfe22 4y agoYeah, but not any economy, to be a nightmare requires a nightmarish economy.
- ramblenode 4y agoTo what extent is the risk due to a society built on debt?
- version_five 4y agoIt's completely due to that, but so is the fact that we can have nice things.
- credit_guy 4y agoDeflation is never a problem in a fiat money economy. You can print your way out of a deflation. In the 19th century and in 1929 currencies were pegged to gold, so you could not just print money. All periods of economic crisis were deflationary, and the central banks did not have a lot of tools to fight that. That’s the origin of the idea that deflation is worse than inflation. This is just bogus nowadays.