Re: Is deflation truly that bad for an economy?

You seem to be writing just for the sake of writing and having your word heard. What exactly do you disagree with me on? I never said that deflation is the same as depreciation, I was trying to explain the psychological motives behind human behavior, why people will still spend under deflation.

They may continue to spend during deflation, but they spend at lower rates evidenced by the drops in velocity.

Deflation and depreciation cannot be related. Since depreciation is consumption of capital, yet deflation is an increase of the general price level without any consumption, there is no way to relate them sensibly.

Just in case, deflation is a decrease in general price level. Depreciation means a decrease in value (just like deflation a decrease in price), what you refer to here is a narrow definition from accounting (but this is still the same concept of losing value). I think I explained it pretty well to repeat myself in respect to psychological aspects being effectively the same for both deflation and depreciation.

Yes, the typo should read "deflation" instead of "inflation", but no, depreciation as a consumption of capital is an economic theory supported by resale prices relative to purchase prices. Accounting can only serve to approximate the sample. Accounting is the sampling method while economics is the theoretical construct.

A change in the general price level does not even take into account consumption of investment much less represent general consumption though it does strongly lag a decrease in velocity thus consumption.

So what do you actually disagree with me on? You seem to be trying to hide the lack of thought behind the flow of words (which are irrelevant to the issue in question you are making an effort to argue against).