4 ms·
You seem to misunderstand certain aspects. If economy will grow at 4% it means that people get on avarage 4% on their investment be that work, assets, capital.
by roguas 14y ago
You seem to misunderstand certain aspects. If economy will grow at 4% it means that people get on avarage 4% on their investment be that work, assets, capital. Its still beneficial for them. Even with deflation at this assumed 4% they will simply invest in things that have better ratio of roi/risk.
Deflation is not obviously bad. We had deflation during the whole industrial revolution and things were running smooth. If people hold on to savings rather than invest suppliers will quote higher prices in order to put the money back into system or hoard the money for themselves.
One thing for sure. You wont be robbed out of thin air and that whats inflation is for. Central bank has no money for retirment... fiiiine, let print more -> market will stabilize itself.
Plus if the value of bitcoin goes sky high. It will be lucrative to mine again. It has the mechanisms of selfhealing.