This seems like as good a place as any to put this thought I’ve had lately:
Would Deflation be such a bad thing?
From my understanding, deflation tends to raise wages and rewards savers while lowering corporate profits and hurting borrowers.
It also does tend to raise unemployment.
Over the past couple years wages have not increased, while corporate profits have been flying high. I wonder if a little deflation would be good for the economy right now.
