Montecfo
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
So you view deflation as a positive? Perhaps you can flesh that out a bit.The period 1873-1896 had deflation, averaging roughly 2% annually. At the same time, real GDP grew over 4% annually. We should be so lucky as to have that "scourge". It became the beginning of the 2nd industrial revolution. Real wages in this period grew at faster rate than the prior period of inflation (1866-1879).
Remember, it is REAL wage growth, REAL GDP growth, REAL returns that matter.
But then we couldn't have people happy that they are getting a 4-5% nominal return on a treasury while inflation rages at 8+.
Deflation crushes economies because it creates incentive to delay spending since prices are in decline. Every delay is rewarded by lower prices. Which then bloats inventories leading to even lower prices. Leading to production cuts, layoffs and even lower prices.
It is easy to see how damaging this is and why central bankers worldwide labor to avoid it.