Yes yes yes! Dont know why nobody gets this. Most business depend on credit in some fashion. So a even a steady deflation rate will discourage borrowing which in turn discourage activity.
Could you please explain that to tee-rex who thinks that the amount of money blocked in the production process (that is, between the moment you need to spend it, and the moment you get to sell your production) has no cost.
No I agree with him. It has a cost but business take that risk because they have a PO so some inventory is guaranteed sold. But if there is a steady rate of deflation then the cost is higher. Less incentive to do business