Re:German banks are hoarding so many euros they need more va...
by toss1 on Tuesday February 04, 2020 @05:24PM
(#22241720)
Of course transient deflation can be a good thing. Adn deflation as we are now accustomed in the tech industry is a very good thing - it is caused by an increase in the quality/supply of available goods, rather than a decrease in the money supply.
However a deflationary spiral of declining money supply (usually created by destruction of value), where labor utilization & wages decline makes things much harder for ordinary people.
That said, I'd like to note the the above answer was to a question about what is bad about deflation. The good thing about deflation may be that it tends to be followed by increasing growth, possibly in no small part because central banks try to do something about it.
However a deflationary spiral of declining money supply (usually created by destruction of value), where labor utilization & wages decline makes things much harder for ordinary people.
That said, I'd like to note the the above answer was to a question about what is bad about deflation. The good thing about deflation may be that it tends to be followed by increasing growth, possibly in no small part because central banks try to do something about it.