Which is worse Hyperinflation or Deflation?
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  Which is worse Hyperinflation or Deflation?
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Author Topic: Which is worse Hyperinflation or Deflation?  (Read 8351 times)
FDRfan1985
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« on: April 21, 2014, 09:01:15 PM »

I know both are bad, but which one is worse?

How does ether affect a nations currency?

Does anyone know where I can find a chart that explains how changes in unemployment, money supply, interest rates, exchange rate etc... affects one another?
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MurrayBannerman
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« Reply #1 on: April 21, 2014, 09:17:33 PM »

Hyperinflation, easily.
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True Federalist (진정한 연방 주의자)
Ernest
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« Reply #2 on: April 22, 2014, 12:04:27 AM »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
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Cincinnatus
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« Reply #3 on: April 22, 2014, 07:38:10 AM »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
It actually isn't bad

Under-investment, reduced production causing lower wages, and obviously, severe adverse effects to debtors.  Yeah, not like deflation isn't associated with economic depressions or anything..

To the OP, hyperinflation is far worse.  See: History.

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ag
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« Reply #4 on: April 22, 2014, 10:47:06 AM »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
It actually isn't bad

If you can engineer deflation without an economic slump, tell me how Smiley
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Person Man
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« Reply #5 on: April 22, 2014, 11:39:35 AM »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
It actually isn't bad

If you can engineer deflation without an economic slump, tell me how Smiley

So, this question is whether zero growth for twenty years is better than near double digit contraction in two?
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SPC
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« Reply #6 on: April 22, 2014, 11:40:13 AM »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
It actually isn't bad

If you can engineer deflation without an economic slump, tell me how Smiley

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Maxwell
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« Reply #7 on: April 22, 2014, 12:17:33 PM »

Hyperinflation, easily.
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ag
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« Reply #8 on: April 22, 2014, 01:29:32 PM »
« Edited: April 22, 2014, 01:32:23 PM by ag »

Well deflation isn't bad so Hyperinflation.

Deflation certainly is bad, but it doesn't destroy an economy like hyperinflation does.
It actually isn't bad

If you can engineer deflation without an economic slump, tell me how Smiley



You are missing a graph Smiley

Anyway, I get you point. Yes, you could have deflation as a byproduct of very rapid growth caused by technological change (money supply constant, fire has been invented). But that was not really the point here, methinks Smiley
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AggregateDemand
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« Reply #9 on: April 22, 2014, 02:11:32 PM »

Real deflation is an integral part of economic development. The easiest way to become wealthier as a species is to utilize abundance and efficiency to reduce the cost of goods/services. Housing, healthcare, and oil inflation are the economic crises of our era because they drag us backwards, and they thwart economic growth.

Hyperinflation is much worse.
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Antonio the Sixth
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« Reply #10 on: April 22, 2014, 03:09:58 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.
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Oakvale
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« Reply #11 on: April 22, 2014, 03:11:25 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.

Huh Hyperinflation is worse than deflation. This is not actually a remotely controversial position.
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MurrayBannerman
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« Reply #12 on: April 22, 2014, 03:14:37 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.

Huh Hyperinflation is worse than deflation. This is not actually a remotely controversial position.
The Wehrmact and the Zimbabweans agree.
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Antonio the Sixth
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« Reply #13 on: April 22, 2014, 03:19:28 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.

Huh Hyperinflation is worse than deflation. This is not actually a remotely controversial position.

Deflation basically means economic depression. Hyperinflation might eat out most of growth, but it doesn't generally lead to the same lows.
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World politics is up Schmitt creek
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« Reply #14 on: April 22, 2014, 03:38:22 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.

Huh Hyperinflation is worse than deflation. This is not actually a remotely controversial position.

Deflation basically means economic depression. Hyperinflation might eat out most of growth, but it doesn't generally lead to the same lows.

Well, speaking purely about economies, would you rather live in 1990s Japan or 1920s Germany?

Sorry, Antonio, but--while I'm not an expert on the subject and could be misinformed by the economic education that I do have--I'm going to have to part company with you on this one.
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AggregateDemand
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« Reply #15 on: April 22, 2014, 04:01:28 PM »

Under-investment, reduced production causing lower wages, and obviously, severe adverse effects to debtors.  Yeah, not like deflation isn't associated with economic depressions or anything..

Yes, deflation follows money supply contraction. It is not the cause. Money-supply contractions caused by underlying weakness in the credit markets are temporary, and can be easily reversed by judicious use of capital. If capital is controlled by a plutocracy who only use it to further their own wealth, then progressives have an argument for funding nascent industry with the government.

We don't live in a world with scarce capital. Quite the opposite problem, in fact. Investment bubbles everywhere from decades of global QE.
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Simfan34
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« Reply #16 on: April 22, 2014, 04:14:33 PM »

People are actually arguing hyperinflation is worse than deflation? My God this forum is full of morons.

Huh Hyperinflation is worse than deflation. This is not actually a remotely controversial position.

Deflation basically means economic depression. Hyperinflation might eat out most of growth, but it doesn't generally lead to the same lows.

Well, speaking purely about economies, would you rather live in 1990s Japan or 1920s Germany?

Sorry, Antonio, but--while I'm not an expert on the subject and could be misinformed by the economic education that I do have--I'm going to have to part company with you on this one.

You don't need to be an expert in order to know the answer, and you, indeed, are correct.
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ag
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« Reply #17 on: April 22, 2014, 06:44:01 PM »

Hyperinflation is an acute economic disaster. Deflation - especially if prolonged - may be unpleasant. Which one would you prefer?
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they don't love you like i love you
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« Reply #18 on: April 22, 2014, 06:48:47 PM »

The US actually had deflation from 2008-2009. Zimbabwe on the other hand had hyperinflation. Which was worse?
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Hatman 🍁
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« Reply #19 on: April 22, 2014, 07:14:59 PM »

I'm no economist, but couldn't deflation be cured by printing more money?
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Niemeyerite
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« Reply #20 on: April 22, 2014, 07:26:25 PM »

I'm no economist, but couldn't deflation be cured by printing more money?

Yes, it's way easier to cure deflation. That's why I think deflation s better than hyperinflation, but I don't think it's "waaaay better" like most of the people here.
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Lief 🗽
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« Reply #21 on: April 22, 2014, 07:54:24 PM »

Hyperinflation is one of the worst things that can happen to a country. Obvious answer.
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True Federalist (진정한 연방 주의자)
Ernest
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« Reply #22 on: April 22, 2014, 08:14:54 PM »

I'm no economist, but couldn't deflation be cured by printing more money?
Depends on what you mean by "printing more money".  A one time infusion of money tends to simply be added to savings or used to pay down debt during periods of deflation unless one is so poor that spending was already below bare minimum levels.  The basic psychology of "the economy is uncertain, therefore I need to be cautious and not spend" is not affected by such things.  That's why the most useless part of the 2001 tax law was the one time tax rebate as it went almost exclusively to people who could afford to either put it into savings or use it to pay down debt, and that's what most people did with it .

If it weren't for the lengthy period of QE that's been going on as a stealth means of constantly printing money, we'd be in deflation right now.  I don't like the constant QE, but it has been necessary not as a cure, but as a means of alleviating the symptoms until our economy gets better.
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MurrayBannerman
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« Reply #23 on: April 22, 2014, 08:37:48 PM »

The US actually had deflation from 2008-2009. Zimbabwe on the other hand had hyperinflation. Which was worse?
To be fair, Zimbabwe is a third world nation that is even further in the hole because of hyper inflation.
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jaichind
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« Reply #24 on: April 23, 2014, 02:44:52 PM »

For sure I prefer deflation.  All things equal I prefer deflation over even small amounts of inflation.
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