Post
Topic
Board Economics
Re: Question for deflation advocates
by
molecular
on 08/12/2011, 01:29:40 UTC
Prices in Switzerland are sticky.  There are a few exceptions, such as electronics retailers, who are already used to sector-specific deflation, but most businesses are not willing or capable of lowering their prices.

I've talked to lonelyminer in Prague and I asked him what where the arguments of the people arguing that deflation is a danger because this is a long-running question I had. He answered with this concept of "stickiness of prices" and with the problem of cash divisibility. It made sense to me.

Bitcoin clearly doesn't have any of these problems, people are used to wildly fluctuating prices in the bitcoin economy and the "cash" is arbitrarily divisible.