Amazon.com Widgets
  • Good for most of us

    The economies of most countries are based on assumed inflation, but that doesn't mean it always needs to be like that. Inflation is great if you're owed money - but not so great if you owe it. Let's face it, most of us are in the latter position these days!

  • Necessary, but not enjoyable

    If the earth was the size of Jupiter, then perhaps limitless growth would be possible. Unfortunately, the earth's carrying capacity is in decline. This means that it is a mathematical certainty that there will be a time when even 0% growth is impossible to maintain; deflation must happen. Despite the artificial and extreme efforts to maintain our capitalist "religious-like" belief in growth by the powers that be, the greater the prolonging of rampant growth, the more spectacular the decline shall be. Furthermore, the maintaining of the illusion of limitless growth in the West will (and has already) come at the expense of the suffering of the poorer nations, as well as our own poor and middle class.

  • Necessary, but not enjoyable

    If the earth was the size of Jupiter, then perhaps limitless growth would be possible. Unfortunately, the earth's carrying capacity is in decline. This means that it is a mathematical certainty that there will be a time when even 0% growth is impossible to maintain; deflation must happen. Despite the artificial and extreme efforts to maintain our capitalist "religious-like" belief in growth by the powers that be, the greater the prolonging of rampant growth, the more spectacular the decline shall be. Furthermore, the maintaining of the illusion of limitless growth in the West will (and has already) come at the expense of the suffering of the poorer nations, as well as our own poor and middle class.

  • Yes, I think it is a good thing.

    Yes, I think that deflation is a good thing because although it is bad for businesses it is good for the general public and those with a tight budget. Actually what we need in the world is more deflation because then the public would actually be able to afford goods.

  • Dangerous if too much

    .As the 1930s showed, deflation is often a sign of a coming recession or depression. It makes debts harder to pay off, as the money owed is more valuableIt's hard for the central banks to combat it, as current efforts by the ECB show. A small amount, maybe 1%, is livable, but anything more than that is dangerous.

  • Depends on the Time Frame

    Firstly, it depends on the time frame. In the long term, neither inflation nor deflation has any effect on an economy, as according to the neutrality of money principle. In the short term, deflation will typically reduce credit in the credit markets and thus lead to economic slowdown or recession (reduction in the supply of loanable funds; reduction in aggregate demand). Also, if you a creditor it is very good as the money you are owed is now worth more, but if you a debtor the money you owe is worth a lot more (thus not so good).

    Posted by: WXL
  • No more economy?

    From what I saw when looking up deflation, it is being compared to things such as the Modern Day Great Depression, which was a very historically rough time for everyone involved. A lot of the people nowadays are very big on money, and money seems to make the world go around.

  • Deflation is a very bad thing.

    The only good thing about deflation is that it can counter excessive inflation. However, deflation can cause many bad things as well. Really, any shift in the value of money can destabilize the economy. Since everyone is used to inflation, which has been going on for hundreds of years, deflation can be even worse.


Leave a comment...
(Maximum 900 words)
Diqiucun_Cunmin says2015-01-26T02:12:22.613
Deflation is a neutral thing... Of course, lenders usually consider UNEXPECTED deflation a good thing, and borrowers usually consider UNEXPECTED deflation a bad thing, but as far as the whole economy is concerned, it's just, well, a continuous decrease in general price level...

It's like asking if depreciation of currency is a good thing or bad thing. If the Marshall-Lerner condition is satisfied, of course it's a good thing for the trade balance - just ask the Japanese, who are now doing it on purpose. Depreciation can also be a bad thing - just ask Putin.