> increasing demand through lower prices This sounds nice in theory. In practice, prices fall only very slowly, if at all, due to the way that prices are set i

> increasing demand through lower prices This sounds nice in theory. In practice, prices fall only very slowly, if at all, due to the way that prices are set in practice: Producers decide how much they want to charge, and they are naturally inclined to charge more rather than less. This might be different in a world where the price tags are made by customers, but we have to work with the world we live in. By the way, this is probably the best argument for tolerating a modest rate of inflation (e.g. 5% or so): For "the market" to work well, relative prices need to change to reflect the changing reality of production and consumption. Since the mechanisms of how prices are set allow prices to rise faster than they can fall, it is a good idea for the average price level to be increasing at a modest pace.