No. Deflation is terrible for an economy. So much so that we tolerate a touch of inflation if for no other reason than to ensure deflation doesn’t happen.
In deflationary periods, money gets more valuable just sitting in a coffee can doing nothing. This may _seem_ good initially, but this means:
– Any debts you have get _more_ expensive over time, since the amount of the debt stays the same, but your income (likey) decreases to account for deflation. Servicing debt takes a higher percentage of your income.
– There is less incentive to invest, making it more expensive to take out loans or start businesses. This means fewer people are able to afford college, afford a home, buy a car, take a risk, etc.
– Consumption and purchase are delayed as long as possible. If something is $100 today and $90 next month, you are best served by waiting until next month to buy it.
That last one is **really, really bad**. If you delay purchases, that drives down demand. With low demand, companies will sell fewer goods/services. Lower sales means staff reductions. Staff reductions means less money to spend, leading to more delayed purchases. It is a death spiral for any economy.
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