The argument that I hear the most is that if money will increase in value then people are going to save as much as they can and spend far less, which will decrease economic growth. But wouldn’t it be far better if everyone only buys the things they really need and save the rest?
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Inflation keep economy moving forward… you buy that new refrigerator now for fear of it going up $50 next year. You invest your savings rather than leave it in a checking account or under your mattress, so that it’ll grow and that investment allows money to be borrowed by others to fuel growth.
Conversely, deflation slows economic activity by causing people to hold off spending, to hoard money in unproductive ways, so economy slows.
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