Which is worse Hyperinflation or Deflation? (user search)
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  Which is worse Hyperinflation or Deflation? (search mode)
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Author Topic: Which is worse Hyperinflation or Deflation?  (Read 8432 times)
AggregateDemand
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Posts: 1,873
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« 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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AggregateDemand
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« Reply #1 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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AggregateDemand
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Posts: 1,873
United States


« Reply #2 on: April 24, 2014, 10:31:06 AM »

Side note, but I'm expecting this to happen when we hit the renewable energy science right on the head.

Maybe. We don't have to wait on renewable energy though. Middle class decline is caused, in part, by America's proclivity for expensive vehicles with poor EPA fuel economy (trucks). We could have energy deflation and cheaper automobiles today by changing US automobile policy.
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