Deflation can be bad but I fundamentally disagree that all any amount of deflation is always bad. It depends on degree and cause. If your thesis is that hard money disincentives investment and economic activity I disagree does it mean utopia no or that recession isn’t possible no, but if you have more capital from saving eventually there is a point where it is advantageous to invest or spend. Saving then investing vs borrowing to invest.
Discussion
If there was truly enough capital for investing and spending then deflation would never be a concern to begin with.
nobody suggested than any amount of deflation is always bad
I'm suggesting that structuring the market so that its *always* deflationary is bad.
I think you need to write a full paper on your thesis id read it
lol
thanks for the encouragement.
its just that maxis are erring on the other side of the inflation/deflation spectrum than MMT guys
but writing a paper would help me get my thoughts in order, which is usually most of the reason people write them... 🤔
I think we likely agree on many things but without a full picture of your theory it’s hard to say where exactly we agree of disagree since there are a lot of assumptions