Quote from: JoelKatz on June 22, 2011, 01:30:14 PM

Quote from: cvk on June 22, 2011, 01:14:42 PM

If decreasing prices (deflation) are caused by increasing productivity, then the average worker will deserve the increasing purchasing power his fixed salary provides, and he will never need an actual raise or a pay cut (as long as he remains exactly average).

Right, but the real question here is what happens if deflation is caused by scarcity of currency occurring at a rate that's likely to exceed any increase in real value elsewhere. And the answer is, so long as this deflation isn't terribly unpredictable, nothing much will happen.

I agree with you, JoelKatz. In a Bitcoin economy where continuously increasing demand drives up the value of bitcoins, general price decrease (deflation) won't have a negative effect on employment. At worst, employers and employees will occasionally renegotiate their contracts.

I think OP's real question was more general:

Quote from: NoodlesJefferson on June 21, 2011, 01:56:08 AM

Would there be job stability in a Austrian/deflationary economy?

Yes. In general, job stability will not be negatively affected in an "Austrian/deflationary" economy.