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Board Beginners & Help
Re: Why such agreement that Deflationary currency is a bad thing
by
sgexpat
on 01/05/2013, 09:15:32 UTC
The answer is simple. By definition a deflationary (what you mean by this is a currency that is relatively fixed in supply vs economic and technological progress, driving down prices and up the value of the currency) makes it difficult to fund government deficits because there is no option to create money out of thin air instead of taxation.