Well now it seems the media is gearing up to tell us how scr3wed we are all going to be becuase of deflation.
IANAEconomist but the follwoing makes sense to me.
If you have fixed assets deflation will hit you badly. If you offset your assets with sterling or have no assets only liquidity, not taking other factors into account, surely the inflation which erodes your liquidity in an inflationary period will now enhance them in a deflationary period?
We blindly assume growth is good and more growth is better. Surely a tempered structured growth would be better?
In recent years the economy was "good".
Inflation eroded the value of earnings which did not rise in line with inflation. If the inverse applies and deflation erodes the cost of living faster than your income would you actually be better off?
When permy I had many payrises "in line with inflation blah blah". I have never had my slary reduced becuase of deflation
.
IANAEconomist but the follwoing makes sense to me.
If you have fixed assets deflation will hit you badly. If you offset your assets with sterling or have no assets only liquidity, not taking other factors into account, surely the inflation which erodes your liquidity in an inflationary period will now enhance them in a deflationary period?
We blindly assume growth is good and more growth is better. Surely a tempered structured growth would be better?
In recent years the economy was "good".
Inflation eroded the value of earnings which did not rise in line with inflation. If the inverse applies and deflation erodes the cost of living faster than your income would you actually be better off?
When permy I had many payrises "in line with inflation blah blah". I have never had my slary reduced becuase of deflation
.
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