Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
tee-rex
on 26/03/2015, 08:15:32 UTC
@tee-rex #176:

TBH, I was hoping for a more mathematical argument than what you give in #176, I just find algebra easier to follow than words (maybe because it's less ambiguous).

Anyway, you seem to be making a point about profit. TBH, I hadn't analysed that, but having slept on it have now done so and am still of the opinion the two flations are mirror images (perhaps complements, or conjugates, is a better term. But, as I inclined above, I'm not that good with words).

If I don't use formulas this doesn't in the least mean that my argument is less mathematical than would have been if I did. My point is that you don't need deep understanding of economics to see why deflation is bad, since it can be easily shown by pure mathematical reasoning.