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"Deflation, on the other hand, means that no one can pay back their loans and this means default at both the micro and macro level."
Nov 04 05:30 am
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All Comments by Steven Hansen »It's a Great Time to Be an Inflationista [View article]
this does not need to be true if there is a gentle deflation.
your overall argument fails in that hyperinflation causes only slightly less damage than hyperdeflation. with hyperinflation
- retirees and poor are screwed
- budget deficits would run wild as tax revenues would be a year out of sync with government expenses.
- there is no incentive to sell as things will be worth much more tomorrow (economy would collapse).