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URL:
https://boards.fool.com/pikapp383-hmmm-deflation-means-money-now-is-10900865.aspx
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| Subject: Re: THE INFLATION ILLUSION | Date: 5/27/1999 9:00 PM | |
| Author: exmsftfool | Number: 27120 of 283823 | |
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pikapp383 Hmmm, deflation means money now is worth more than money later. A little bit of inflation is a good thing, it encourages investment. No, deflation means money now is worth less than money later. That discourages debt, not investment. A little bit of inflation is not a good thing. A little bit of deflation is a good thing. Most people tend to get slowly better off. A lot of deflation hurts a lot, but if recognized the cure is much easier than it is to kill inflation. Finally, steady inflation is economically a non-event, especially at low levels. It is unexpected, inflation that can cause some beneficial effects. But it tends to be a one-time-shot until people catch on. That is why Keynes did not have a general theory like he claimed, but a specific one. |
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