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The problem with deflation is that, if you're trying to control the money supply, and your control is based on printing money, and you have deflation, you lose
by Cacti 12y ago
The problem with deflation is that, if you're trying to control the money supply, and your control is based on printing money, and you have deflation, you lose control. The figurative "pushing on a string," you have nothing left to leverage. You can't go below 0.
It's really more of a power/control issue than anything. The _entire point_ of centralized banking is to _cause_ inflation, just not enough that it becomes an issue.