> Deflationary = good for regular people, companies are loath to invest. Saving is encouraged. You've explained why inflationary is bad but not why deflationar

> Deflationary = good for regular people, companies are loath to invest. Saving is encouraged. You've explained why inflationary is bad but not why deflationary is good. The starting point has to be history, where deflation has been accompanied by a lack of economic growth and high unemployment. During the Great Depression, the dollar became a deflationary currency and the slowdown in spending certainly didn't make the economy serve regular people any better. That's the canonical example of deflation you have to explain away.