We can’t we lower wages with slow deflation?

Question

Wouldn’t it be good for the currency if we slowly steadily moved into deflation and at the same time lower the wages. Then the consumers wouldn’t have too much power, right? Or would it be a global perspective problem?

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Answer 1

Deflation would be good for the currency as an investment – but you don’t generally want your currency to be an investment. That’s how you get people hoarding your currency instead of using it to exchange for goods and services.