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How do you square this with the idea that deflation is bad? That's what I've never understood.
by wavesounds 13y ago
How do you square this with the idea that deflation is bad? That's what I've never understood.
- stretchwithme 13y agoI don't hold that view. Keynesian economics doesn't make much sense to me, as a change in the value of our medium of exchange is not what creates prosperity. Its investment in technology that makes things cheap and makes a country prosperous. Not manipulating the medium of exchange. Austrian economics makes a lot more sense to me, although not everything they say does.
- LogicalBorg 13y agoI think deflation occurs when the economy is in a downturn, therefore economists think it is bad. I myself would refer to "good" or "bad" kinds of deflation. It's OK when prices are falling due to technological advance (the "good kind"); that happens all the time and is not the same as a downturn (the "bad kind" of deflation).