Should We Worry About Deflation?

[Kevin_Kennedy]

Yes, the current economics brain trust is worried that consumers will collectively show the good sense to delay purchases, pay down debt, and increase their savings. After all, this liquidation of malinvestments will likely take a while. The prudent thing to do in times of uncertainty is not to ramp up debt and spend money you don't have. But now, all of a sudden, "saving" is a dirty word.

Should We Worry About Deflation? - Doug French - Mises Institute

 

[Richard-H]

Great article - I can't wait until the prices of cars & guitars come down!

 

[editec]

Given that our economy is build on a consumption model, rather than a sustanable model?

Damned right we should.