Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
thaaanos
on 19/04/2015, 13:45:46 UTC
Not all things follow a linear path, you argue that deflation is a simple transition from inflation while we argue that there is a phase change involved. I think that your argument of linear transition doesn hold, as agents in a deflationary environment alter their behaviour substantiantly. That is you cannot draw analogies between inflationary equilibriuoms and deflationary. Phase change is never symmetrical