Every economist says that deflation is bad and that inflation is good for business and the economy

They are lying

>Every economist

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>American Education System
what it leads to is
saying retarded things at the same time thinking you're some sort of big head genius

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Yes, exactly. When the price drops, people stop producing things, put their company on hiatus fire all of their employees, and the economy collapses.

You figured it out all on your own.

>Why hasn't anyone tried to stimulate deflation and lower prices?

They have. It happened to japan 20 years ago or so and it was devastating to their economy.

I agree with you, a stable rate of the growth of money of no more than 2 percent is desirable.
I'm not in favour of a more regulated environment one bit. That's why I advocate for a stable low growth of the money supply per year and just leave it at that.

Japan didn't actively stimulate inflation. On the contrast, they've worked very hard since then to try and create little economic growth and very little inflation but to no avail. Japan is the most prominent example of how you should not handle a crisis of deflationary asset prices.

OP is galaxy brain, stop talking shit!

But the transactions being made today would be "decided" in the past and the transactions being made in the future will be "decided" today.

Seems like we're just shifting the activity in time, not actually impacting the activity

Fiat currencies always do this and have always failed. They're dumb as shit or are trying to undermine the goy this way.

Yes, but the time it took to decide now if you want to buy something or not is influenced by the rate of inflation in general.
You're not impacting if someone buys something or not in one dimension, when there is inflation. They will buy it but the rate of inflation determines generally how fast they will because in investments for example by a low degree of fear of missing out.

With deflation however, the decision that you will not buy it in the future or later is the case, so the complete opposite of inflation

Where inflation determines how fast you want to buy it, deflation determines how late you want to buy it.

It's not a difficult concept to grasp

Hes right I'm taking econ. If your money deflating and is getting worth more relative to other goods than it makes more sense to hold money so centers its increasing in value. Why would you hold money instead of buying the new cheap shit? Well because you money is getting worth more where the stuff you buy is getting worth less! This makes people delay purchasing. When everyone stops purchasing it leads to a recession or depression.
Yes much of economics is just responding to mass changes in peoples moods. Since everything is dealt off of future expectations when those things fail to happen it derails the machine for a bit.

Think about it user when inflation dose not match wage raise then the worker is better off since the money he got is not worth more. This is bad for the bussiness man because that means his goods are not worth as much but still has to pay the worker what they agreed with.

Fairytale magic wont change that.

Doing an econ major?
I'm finishing my degree in a few weeks or so and will move onto a masters in quantative finance with a focus on actuarial risk management.

Inflation is good because it encourages people to spend or invest their money, which helps the economy grow.

Deflation is bad because it:

a) Makes existing debts harder to pay off
b) Encourages people to save their money rather than spend or invest it, which leads to less goods and services being sold and produced, which leads to a shrinking economy because now everyone is buying less, investing less and producing less

Not everything is a jewish conspiracy. Learn to read more books that explain concepts you don't understand.

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The thing about the debt is more related to exchange rates rather than inflation. Appreciation and depreciation are different from deflation and inflation

The economists are shills for the government. Inflation is a tax on savers. Deflation is a tax on borrowers.

>"productivity" comes from debt expansion larger than existing monetary base
>so long as there is enough inflation that debt can be serviced through time
>impossible to ever repay debt so once that liquidity stops rolling allowing debt to be serviced means financial institutions, businesses, and individuals become unsolvent drowning in liabilities
Theoretically this isn't so bad because it just means failures are washed out and after the recession economy comes back stronger. Reality is the global economy has become too dependent on cheap money keeping the drugs flowing through the veins so now they're scared shitless over how much carnage there would be once deflation rears its head. Global wealth is mostly financial trickery. It's the tail wagging the dog at this point.

Thank you for your response. I still don't get it, but thanks for trying.

>a) Makes existing debts harder to pay off
Maybe that would incentivize against taking on debt? Or maybe people would plan for deflation and that would impact interest rates?

>b) Encourages people to save their money rather than spend or invest it
Saved money is invested by the banks, no?

It's related to inflation because inflation leads to lower unemployment and higher wages, which means you earn more money while the debt stays the same (at least relatively speaking).

>Maybe that would incentivize against taking on debt?
Taking on debt is the foundation of the economy.
>Or maybe people would plan for deflation and that would impact interest rates?
The only planning involved with interest rates is central bankers doing their best to keep the machine running with cheap money. They decide interest rates to fight deflation.

youtu.be/V41_kZuOE0w
Ah I was assuming you meant foreign countries holding debt rather than domestic individuals my bad fren

I'm reality, the farmers wealth has not changed.
The value of corn is constant, in that what can be obtained from that corn (food, materials, etc) does not change. So it doesn't matter if corn sells for $1, $2, or $3. Only the value of the dollar has changed, but the value of corn is constant.

What if you're poor and want to found the next Microsoft?

With debt you can make it happen. Without debt you're fucked and the economy misses out on all the cool shit your startup would create.

Debt is only bad if its used for things that don't increase productivity, like buying a new TV instead of investing it in your shop so you can sell more goods.

As for the banks, they do lend money to borrowers, yes, but how are you supposed to lend money to people if they don't spend it?

You borrow money because you want to spend it, which increases inflation.

Translation: we expect shit to grow/inflate, we gamble on it, and when it doesn't we lose, so we need to force it to do what we want.
This is what we get for letting Jews control economic theory and practice.

in the current economic model (kike fiat debt banking) there is no alternative without collapsing the system

inflation is built into it, it creates a fake economy, creates giants and ants .. where the giants will be closer to the money creation. Ants are the tax slaves.

It's slavery, terrorism. By inflation; trillionaires and debt slaves.

You remember "too big to fall"? That happens.

Idk, user, that sounds pretty Jewish to me.

Hard money makes capital work. Do your part, discharge your debt and trade for hard money.

for most of human civilization we have no had "inflation" because we didnt have money and jews ruining everything with usury

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Sounds about right.

Not tax. Literal theft. Government steals your savings by debasing the currency.

/thread
The whole system is built on debt, and the only way to pay off and make more debt is via inflation.
Which is why it must be undone. We need to end this slavery and usury.

Checked, and redpilled.

Japan handled it better than the west did with it’s debt driven asset bubbles and immigration based gdp. It takes a special kind of autist to be an economist and totally miss the values for the numbers.

The downside of deflation is that it slows investment which can lead to a retraction of the job market and dampen innovation.
This isn’t the whole story, it’s just why deflation is viewed negatively.

Deflation transfers wealth from debtors to creditors. Anyone with a mortgage or student loans would be SOL while Jews would see the value of their assets increase.

Economists are the priests of the made up jewish religion of the dollar

until the federal reserve banking system is annihilated (not just "restructured"), anyone can "try to stimulate deflation" and ultimately be the bitch of bloodlines families and the fed by proxy. they ultimately control interest rates and inflation/deflation

That's why banks should be run by the state at 0 profit like the nazis did.

Yes, but this only holds true for optional consumption and are not as general as you make it. Food, medical care etc cannot be postponed and are not optional in the same sense. It;s mostly purchases of less intrinsic/utilitarian value that gets postponed, and maybe that’s not such a bad thing.

They are correct
Inflation reduces the value of money
Imagine you have $1
Now in X years, it's only worth $0.80 of what it used to be worth, but it still counts as a single dollar

Now imagine you took out a loan(Assume no interest for simplicity) for $100,000
In X years, you still owe $100,000, but it is practically only $80,000!
Businesses operate by taking out loans and building their business around the idea that they'll be able to pay it back when the business is running. If you have inflation, you make business easier.
Yeah, you fuck over everyone who is saving money like the middle class, but the middle class doesn't matter to the economy so this is considered a reasonable price to pay for keeping the economy going.

The biggest reason for Japan's stagnation is because after years of repaying all the debt they accrued through the bubble and surviving the crash they developed a culture of not taking out debt. Japanese companies are very reticent to take loans and prefer to operate on whatever capital they have on hand. The thing keeping them on life support is government spending and the BoJ buying up everything it can get its hands on.

Ethnologist don’t put down specific behavior, but they are scientists. Let’s be honest economists are basically moral/political philosophers.

If interest rates stay negative, that might just happen in the near future.

Some central banks have lately been talking about providing banking services to people in case commercial banks go to shit because of ultra-low interest rates.

Because that would give more power to the lower classes.

/thread

When this was even happen in real world. Is just a theory - cannot postpone buying food because will be cheaper tomorrow, or postpone your holiday for next year, or a surgery.

Maybe will delay buying a small house, but from that point on, no rich fag will delay buying a fucking luxury item.

Problem is inflation is generated, not natural. All those programs financing houses, cars (clonkers) and rabid money printing ensure you cannot just leave your job for long periods to have some personal time because money will turn to shit fast.

What's wrong with your head is that a tumour ?

Because you need to stop printing money through debt like a borderline bitch and accept small (fake) economic growth instead.

The optimal level of inflation is considered to be 2% Deflation is not good as it discourages investment.

There are better incentives to investment than inflation (if the current economic model had strong "ties" to real economic activity, which it doesn't).

We're tapped and cannot come up with downpayments when our savings is depreciated and wages stagnated.

SAGE

youtube.com/watch?v=nn7FEQrA_MA

phillips curve. Inflation is inversely related to unemployment. Low inflation=high unemployment

Big numbers==better.
Why are you such a brainlet goyim?

Its partially true. In theory price inflation is a sign of a healthy and growing economy, but that's only true when wages are raised alongside of them and taxes don't increase. But you should never take what an economist says seriously as they would be rich if they practiced their own beliefs

I have a question, why should a government pursue an contractionary fiscal policy?

>every economist translates to schlomo and his colleagues.

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youtube.com/watch?v=k9_bWbrYPKg

Don´t confuse deflation with rise in production, which also decreases prices. Deflation is when almost everything decreases in price, which means SOMETHING became more valuable (more scarce).

>whatsoever
...said the jew

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considered optimal by who?
you're literally spouting canned propaganda lines from the (((central planners))) which you cannot explain. even they can't explain, and the reason for that is that the 2% figure is pure bullshit designed to obfuscate what they're really doing with inflation: confiscating the wealth of savers by debasing their purchasing power. thieving kikes. buy crypto and gold, short fiat.

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But inflation is good if he goes to buy the inputs he needs to grow corn and the price has risen compared to what it cost him to grow his previous crop?

Artificial “mild inflation” promotes mal investment by blowing bubbles.

Deflation is another name for wealth creation. It used to cost millions for a computer that now costs $100. Society is wealthier as a result. The US economy grew faster than it does today when the currency was tied to gold. It encourages capital formation in the hands of the many which empowers more people to invest and compete and create even more wealth.

>the value of a commodity is constant

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This is type of inflation is good for one thing only- creating generations of slaves.

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Blame the softies who let women vote this apocalypse into reality

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Because of sticky wages. With deflation, firms can't react quickly enough to reduce wages which in turn compresses their profit margins and eventually pushes firms out of the market.

see

Sticky wages are important but are not the only factor that can lead to recession such as the liquidity preference

great video if you're a totalitarian central planner. there is a reason people hate the (((FED)))

Deflation is worse than inflation.

But a lot of economic research went into inflation, so economists everywhere worry too much about inflation.

Inflation can act as a cushion in a crisis or recesseion.

Instead of a nominal fall, you only have a real fall in GDP which is covered up by high inflation.

Deflation is harder to manage, and it's like a downward spiral.

Deflation real or nominal is a clear sign of a recession. It means that households and consumers have less money to spend, and the suppliers of goods and services have to lower their prices to sell their products.

It doesn't mean everything is getting cheaper while your wage is constant.

>good for business and the economy

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They weren’t “softies” they were commies who knew women would vote bigger government.

Inflation is literally theft. It is even worse than taxation because it is deliberately covert. It only works because the people you're stealing from don't understand the system. How are you going to centrally plan your "economy" when people collectively start converting your worthless currency into more sound forms of money?

keynesian economics should be capital punishment, it is 100% treason.

A well timed complete merchant. Good job.

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It does mean if you have savings, deflation is a benefit. If you went into debt to buy assets (house, etc) then deflation of that asset may mean you owe more than it’s worth and you won’t be able to sell at a profit. If you have to sell at a loss, you are probably going to default on the loan, leading to bank losses and a possible banking crisis. That is the real reason the Federal Reserve economists are most worried about deflation. Their primary concern in bank solvency, they don’t really care about the economy.

A lot of the posts here are both right and wrong. While yes, inflation incentivizes spending and reduces debt it also does the same for savings.

This means that you’ve effectively created a Ponzi scheme where people take out loans due to future payments becoming easier, yet savings count for less and less.

This creates a culture oriented towards consumption rather than production. A culture that constantly devalues it’s own currency while detaching it from the only things consistent in value (gold) because doing so would see a system that can only exist in abstract attached to reality. This society eschewed the past, and in doing so threw away it’s future. This society must dig it’s own grave deeper and deeper lest it fall in.

This is the western monetary system. And while there may be strife, only if we drag ourselves away from this system can long term stability be assuredffff.

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No economist here...but inflation is based on debt? I mean how can gold backed currency incur inflation?

If people don't buy then prices will drop until they do buy. What's the problem? There is no problem. It's just an excuse for central banks to steal your money.

listen to ContraKrugman(.com) if you want intelligent alternative economic views

It is based on public and private debt and the creation of additional credit by the Federal Reserve if the banks require bailouts or the government requires additional loans to make a current payment. Yes, it is one big Ponzi scheme.