I'd rather have a little ongoing deflation than risk becoming the next Weimar. O...

gwern on Feb 9, 2010 | parent | context | favorite | on: Have you ever tried to sell a diamond?

I'd rather have a little ongoing deflation than risk becoming the next Weimar. Or China(s). Or Turkey. Or Yugoslavia. Or Zimbabwe...

And inflation imposes costs of its own just from adjustment and uneven inflation discourages investment on its own (holding debt comes to mind).