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The problem bothering me with deflation is if humanity is ready for it? If prices go down and ppl hoard then only the most necessary goods and services will be bought and sold: food, utilities… maybe even hair cut will be mostly handled by yourself

I see such a world as rather good - instead of new iphones each year we could put more efforts into space research, cancer fighting and thats all

However, most of the people seem to be quite good with iphones, hollywood movies and new dresses

Are you sure the humanity wants deflation and not just a tiny minority of people are ready to sacrifice current lifestyle in favor or the greater good?

Code & Psychology ⚡️ 2y ago

I think that's the beauty. If economy is not growing, there is no deflation. So if people are not spending, economy will be slower, deflation will be either slow, or not even there.

Deflation only occurs if money supply is fix, and economy is expanding. But it won't expand, if people are hoarding money. So to say:

Economy is growing -> deflation occurs -> people start to hoard -> deflation dissapears -> people spend again -> economy starts to grow again -> repeat

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Code & Psychology ⚡️ 2y ago

So it is a self-regulating process, which keeps the whole thing in balance.

Which we cannot say for the money printing.