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What you're arguing for is deflation, which has a long-standard track record of either slowly or quickly destroying entire economies.
by crooked-v 2y ago
What you're arguing for is deflation, which has a long-standard track record of either slowly or quickly destroying entire economies.
- trts 2y agocare to cite some examples of deflation quickly destroying an economy? there are many such examples for inflation. Argentina, Germany, Zimbabwe, Greece there is deflation that comes from shrinking of the monetary base and there is deflation that arises out of productivity gains often the "deflation" observed in bad economies is a symptom rather than the cause E.g. there were a few months of official deflation in the US following the global financial crisis, but this followed from the crash rather than caused it.
- insane_dreamer 2y agoJapan in the 90s 00s -- didn't destroy it but weakened it in a very major way Yes, hyper-inflation is highly destructive, but deflation creates a negative cycle that is very difficult to get out of.