Those benefiting from fiat printing, including those who made long-term investments based on continued printing, would get wrecked by deflation.
For ordinary wage earners and savers, deflation is generally better.
One of the reasons mainstream economists can be goofy on this is the association of deflation with recessions and depressions. They’re getting cause and effect confused through. Demand reduction causes prices to fall but falling prices don’t cause a drop in demand.
Worse for who?
Those benefiting from fiat printing, including those who made long-term investments based on continued printing, would get wrecked by deflation.
For ordinary wage earners and savers, deflation is generally better.
One of the reasons mainstream economists can be goofy on this is the association of deflation with recessions and depressions. They’re getting cause and effect confused through. Demand reduction causes prices to fall but falling prices don’t cause a drop in demand.