> Firstly you -really- don't want deflation. That'll kill an economy real quick. Everyone repeats that as mantra but I think that should be challenged. I find

> Firstly you -really- don't want deflation. That'll kill an economy real quick. Everyone repeats that as mantra but I think that should be challenged. I find it doubtful that inflation is needed to encourage spending or investment. Currency inflates naturally (that is, loses value) because it is not inherently useful, and things you can exchange for it are more useful today than they are tomorrow. You won't skip buying a burger today to buy two burgers next year if you're going to starve. And even for luxuries, they are worth more today than next year, because lifespans are limited.