Skip to main content
No. of Recommendations: 0

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

Sorry about that mistake, you are right, deflation means prices go down later, meaning your dollar buys more later than it does now.

But, that is precisely why it discourages investment. When you can get a "return" on your money by putting it in your mattress that means the marginal investment doesn't occur.

Anyway, this is the wrong board for that and I think we will probably disagree anyway.

Here's hoping the "correction" stops,
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.