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Economics aren't discontinuous around zero. All this evaporation would either happen approaching zero or not happen. Deflation does not mean spending money is
by rtpg 13y ago
Economics aren't discontinuous around zero. All this evaporation would either happen approaching zero or not happen.
Deflation does not mean spending money is a bad idea. If I have $100 and there's 10% deflation, in a year, it's worth $110 of today's dollars(or some other number because I can't math, but in that general direction). But if a company is experiencing 100% growth and is worth $100 today, it's still a good investment (if you can sell it in a year).
- pessimizer 13y agohttps://en.wikipedia.org/wiki/Zero_lower_bound_problem https://en.wikipedia.org/wiki/Zero_lower_bound_problem