News for hackers. Stuff that matters.

A comment on US inflation means families are spending $709 more per month than two years ago. Parent comment

Re:US inflation means families are spending $709 more per mo... by mahogany on Sunday August 13, 2023 @05:25PM (#37114695)
That's fair - but that is assuming indefinite long-term deflation. What about intermittent modest deflation as a tool to bring prices down? It seems that just the idea of deflation is immediately rejected in any conversation about monetary policy.

Also, I think in the real world today, a home would still sell in a deflationary environment, given serious supply shortages. Especially for those buyers which are looking for a home and not an investment (investors would lose long term in a deflationary environment, as you say). Couldn't temporary, modest deflation actually open the housing market up for those "real" buyers primarily looking for a place to live?

[ Parent | on HN ]
Re:US inflation means families are spending $709 more per mo... by dualityoftapirs on Monday August 14, 2023 @05:52AM (#37119182)
The fear with trying for temporary deflation is it will become an out of control feedback loop, because there aren't as many "reasonable" monetary tools to combat it as there are with inflation.
[ Parent | on HN ]