Deflation is bad for the economy as it delays necessary purchases which slows economic growth
why is deflation delaying purchases?
The belief is that if the value of the money rises, people are less inclined to spend it. I feel that the ramifications of this effect are vastly overblown.
yeh, i know this is "the belief". the reason why i was asking for an explanation is, that i somehow dont really agree with that belief.
i think its just a "theory" that justifies the use of inflationary currency