Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
dinofelis
on 11/04/2015, 04:28:33 UTC
Cold War.  US politicians use game theory in a MAD strategy.  Nash equilibrium tells them that no matter how much nuclear missiles is built up, neither side most probably won't strike first in a nuclear war cause it'll wipe themselves out as well (mutually assured destruction).  

As a side note: MAD works indeed when you consider a rational cost function.  It becomes dangerous when self destruction implies getting 70 virgins to fuck in paradise Wink