We are being told deflation is bad for our economies and this is used as excuse from our central banks to print more money and destroy our savings/currencies. What they say is that in a deflationary environment, the price of goods falls so people would not buy anything and would rather wait to buy in future, therefore slowing the economy. If so why smartphones sell like hot cakes?their price is falling and people are buying them actually because of that. Maybe because each time the price decreases customers feel like they are getting a good deal, therefore are prompted to buy!!
If our economies are not growing it means that there isn't much inflation pressure, so I don't see any reason to artificially induce inflation by destroying our currencies. I would like to know your view on that..also do you think bitcoins (deflationary) will see a wider adoption by retailers in future?
In the first view seems that a deflationary situation is good for everyone. Anyone could have more with the same amount of money. But for the overall economy, according to the economist is not so good. According to Wikipedia: "Economists generally believe that deflation is a problem in a modern economy because it increases the real value of debt, and may aggravate recessions and lead to a deflationary spiral"
For more, everyone who want can read here:
https://en.wikipedia.org/wiki/DeflationThere is explained in full everything regarding this phenomenon and even the meaning of expressions "real value" and "deflationary spiral" used in the above sentence.
As for the inflation in the situations where it is not real grow of the economy, serve to realize exactly this grow. Injection of new money in the economy make possible that this economy go forward and not remain
without moving. This is a toll used principally for this reason. But it is not told that for sure the put of new money in the market when it is not growth have good results. There to many other factors which need to fulfilled that this tool give the desirable effect.