No! It’s a disaster! Why would you buy something today that will be cheaper in six months? Why buy it in six months if it’ll be cheaper in a year? So demand side crashes for all but essential purchases. And more importantly why produce something today when you don’t know how much what you produce will be worth in six months/a year, but you know it will be worth less? Can today’s cost of production be covered by tomorrow’s sale price?
Deflation causes production to grind to a halt with demand crashing on one side and only downside risk on the supply side. The money machine has been going brrr for the last decade to try and counter this to stop that happening.
I see. But in the end wouldn't this increase the buying power of a single dollar?
In purely monetary terms sure, but purely monetary terms don’t really matter. Without production what are you going to spend your single dollar on? Without production how are you going to earn your next single dollar? Single dollars are just instruments, their only real value is in what they can be exchanged for.
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