Quote from: dinofelis on March 27, 2015, 01:33:52 PM

Quote from: tee-rex on March 27, 2015, 01:31:06 PM

Quote from: dinofelis on March 27, 2015, 01:27:09 PM

Quote from: tee-rex on March 27, 2015, 01:20:18 PM

You were claiming that deflation is a mirror image of inflation, right? Now you seem to be backpedaling this issue?

Not at all. Where do you get that ?

Here is your post. It seems that I remember them better than you do:

Quote from: dinofelis on March 26, 2015, 12:32:36 PM

If you now correct the interest rate for the inflation (that is, i = i0 + p), you will find that inflation or deflation is totally indifferent.

Well, that still holds, doesn't it ?

You make $20 of profit in the 3 cases.

You didn't answer this my post:

Quote from: tee-rex on March 27, 2015, 10:53:31 AM

Okay, you borrow money at 0% interest rate (that means that you will have to return the same amount you borrowed, you name it), which is essentially the same if you just had that money. Inflation as well as deflation is 5%, your profit margin is 2%, when will you suffer losses, and when will you earn profits?

These are starting conditions (no inflation, no deflation, interest rate is 0). Go on with your answer.