Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
ZephramC
on 12/11/2015, 07:10:42 UTC
So when prices go down, its a bad thing because consumers will hold off on spending because it might be cheaper tomorrow?

RealBitcoin spoke about price of bitcoins expressed in fiat money.
If you mean prices (of just about anything) expressed in bitcoins then you are speaking about price deflation. This means that some consumers will hold off some of their spending. Whether this is bad or good thing can not be decided.
It depends where you put boundary between responsible saving and selfish hoarding. And where you put boundary between "only the best goods and investments should survive" and "economy and investment should be stimulated by gradually destroying value of people's money (bitcoins) and forcing them to spend and support consumption".

Think about situations and goods where prices go down (computers, smartphones, ...). Is it a healthy market? Would it be healthy market if prices went down much faster?