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> Personally, I don't consider mild deflation to be any worse than mild inflation. A priori this sounds reasonable. But would you rather live/invest in 1990s
by slurry 14y ago
> Personally, I don't consider mild deflation to be any worse than mild inflation.
A priori this sounds reasonable.
But would you rather live/invest in 1990s Japan (mild deflation) or 1990s America (mild inflation)?
Mild deflation is absolutely terrible in practice. Mild inflation is good/not so bad.
- goodcanadian 14y agoAll else being equal, I don't consider mild deflation to be any worse than mild inflation. Comparing 1990s Japan to 1990s America is not an "all else being equal" situation. Really, economics is such a complex beast, it would take an incredibly complicated analysis to demonstrate which is better.
- slurry 14y agoI'd be interested to know of examples where sustained mild deflation has been accompanied by steadily high economic growth and steadily low unemployment.