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I am well aware of "Gresham's law" that bad money drives out good. I'm just referring to the idea of deflation in general and the fear mongering that happens a

• wsxcde 13y ago
  Well then maybe you should point that out in your initial comment. I'm just referring to the idea of deflation in general and the fear mongering that happens around it. You'll have to do a little better to support your claim that deflation can result in economic growth. One data point from a rather unique point in history isn't enough.
  • jwallaceparker 13y ago
    > Well then maybe you should point that out in your initial comment. Okay I will next time! > You'll have to do a little better to support your claim that deflation can result in economic growth. One data point from a rather unique point in history isn't enough. This isn't my claim. My claim is that economic growth comes from increased productive capacity and not from manipulation of the money supply (neither inflationary nor deflationary). See my simple economic example elsewhere in the thread.