I like the alternative even less, as it incentivises spending more than you would and taking on debt you don't really need.

velcrovan a day ago | parent | next [-]

Well, countries have experienced moderate inflation and moderate deflation, ask the ones who lived through both which one they preferred.

eru a day ago | parent [-]

Moderate deflation is fine, it's good even. But only as long as nominal GDP stays stable.

See the so called 'Long Depression' in the 19th century. Which was only a depression of the price level, everything else did well.

For a more sectoral example, see how computer hardware used to get cheaper and cheaper all the time, but total spending on hardware went up.

	▲	morning-coffee a day ago \| parent [-]
		That is https://en.wikipedia.org/wiki/Jevons_paradox

rerdavies a day ago | parent | prev [-]

> taking on debt you don't really need.

How does that work? When inflation goes to 18%, borrowing rates go to 23%.