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First, if deflation makes loans less appealing... is that such a bad thing given recent history? Second, our economies have always grown so far, but this is no
by foxylad 14y ago
First, if deflation makes loans less appealing... is that such a bad thing given recent history?
Second, our economies have always grown so far, but this is not a law of nature. Our population is stabilising, and much recent growth is effectively a loan (a deflationary one?) from the environment that our kids will have to repay. It's possible that our current economic woes may even be "peak economy".
In which case a currency that cannot be inflated whenever a government/populace gets lazy might be just what we need.