Quote from: BlackHatCoiner on March 24, 2022, 03:07:31 PM

Quote from: Darker45 on March 24, 2022, 01:10:30 PM

Did you mean to say this? I don't quite get your point here. It seems you are comparing two similar bananas.

I say that if prices tend to decrease, you're more encouraged to keep your coins than to let them circulate in the economy.

Just what I was thinking. That's why I was confused a little bit. So instead of this:

Quote from: BlackHatCoiner on March 24, 2022, 11:53:47 AM

People are more discouraged to hoard their currency...

You meant to say the opposite, that people are more encouraged to hoard their currency?

Quote

Quote from: Darker45 on March 24, 2022, 01:10:30 PM

If the prices of goods and services are decreasing, people won't be hoarding money. Spending would be encouraged because things are affordable.

But, if they tended to decrease perpetually, it would perpetually incentivize you to keep your coins as you'd perpetually be able to afford more.

All right, deflation is more or less generic. By default, deflation is perceived to be negative precisely because of your point. However, deflation could further be qualified. If the supply is only racing against demand and ends up winning because of whatever factors like the use of better technologies, the discovery of new efficient productivity methods, and others, positive results are seen even if the prices of goods and services are falling. So while there is negative money supply shock, the reduction of circulating money, it will have little affect on the economic output.

There was this study whose findings were released in 2004 which argued that recent cases of deflation were actually economically good rather than bad.

Moreover, when Switzerland experienced falling prices for around 5 years, rather than economic downfall there was economic growth. Rather than the expected rising unemployment, there was decrease.