Pass the deflation parcel

[BrilloPad]

The nagging fear that QE itself may be causing deflation - Telegraph

Which country will be left with the toxic present in the middle?

[SpontaneousOrder]

Is deflation a bad thing then? Or is it just that we should kick the bursting-bubble can down the road as long as possible?

Not saying we should or shouldn't do any can-kicking. Just that the article seems to paint deflation as being bad in and of itself, rather than pointing out that we prefer inflation to deflation because we currently enjoy the rewards of ponzi-economics, and unexpected deflation will cause our pyramid scheme to collapse before we want it to.

[BrilloPad]

Is deflation a bad thing then? Or is it just that we should kick the bursting-bubble can down the road as long as possible?

Not saying we should or shouldn't do any can-kicking. Just that the article seems to paint deflation as being bad in and of itself, rather than pointing out that we prefer inflation to deflation because we currently enjoy the rewards of ponzi-economics, and unexpected deflation will cause our pyramid scheme to collapse before we want it to.

I have never seen any proof that inflation/deflation are good or bad.

I am sure that we all going to die one day and will go out the way we came in - in sasguru's case out of the rear end of a jackal.

[Unix]

Is deflation a bad thing then? Or is it just that we should kick the bursting-bubble can down the road as long as possible?

Not saying we should or shouldn't do any can-kicking. Just that the article seems to paint deflation as being bad in and of itself, rather than pointing out that we prefer inflation to deflation because we currently enjoy the rewards of ponzi-economics, and unexpected deflation will cause our pyramid scheme to collapse before we want it to.

Deflation can kill an economy, as people won't buy stuff if it's dropping in price (they will wait), I think you can work out the rest.

[VectraMan]

Deflation can kill an economy, as people won't buy stuff if it's dropping in price (they will wait), I think you can work out the rest.

That's the theory, but the electronics industry has done pretty well out of a permanent state of deflation. Also the main measures of inflation include food and living costs. Well you can't stop buying food or paying your gas bill because you think it's going to be cheaper in 6 months.

[Unix]

That's the theory, but the electronics industry has done pretty well out of a permanent state of deflation. Also the main measures of inflation include food and living costs. Well you can't stop buying food or paying your gas bill because you think it's going to be cheaper in 6 months.

Your talking about deflation due to increased productivity rather than monetary deflation which is what everyone else is talking about.

[VectraMan]

Your talking about deflation due to increased productivity rather than monetary deflation which is what everyone else is talking about.

I am? I thought I was talking about people not necessarily holding off on buying things because they're getting cheaper.

[Unix]

I am? I thought I was talking about people not necessarily holding off on buying things because they're getting cheaper.

In some circumstances yes but generally its true, if you don't believe that go to retail store the day before a big sale and then go on the day of the sale and compare.

[MicrosoftBob]

In some circumstances yes but generally its true, if you don't believe that go to retail store the day before a big sale and then go on the day of the sale and compare.

Like the riot when a Pounland had a half price sale, or the people trampled to death at an Ikea sale

[Unix]

Like the riot when a Pounland had a half price sale, or the people trampled to death at an Ikea sale

Yeah, but if you went the day/week before, business as usual.