The profit incentive still functions to drive investment under deflation, because you can make more money from investment than letting money sit there. US econ

The profit incentive still functions to drive investment under deflation, because you can make more money from investment than letting money sit there. US economy experienced massive growth through periods of deflation 1815 and 1860, and 1865 to 1900, as a result of industrialization and increased international trade. I think people greatly overestimate the impact of monetary policy. Consumer demand and technological improvement drive growth more than anything. Climate change and rising oil prices drive investment in renewables for example. Consumer demand for computing drove technological improvements, which drove investment and falling prices. In my view, this would happen regardless of monetary policy.