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View Full Version : Deflation and Inflation: Which is the lesser evil?


Sammyboy RSS Feed
22-06-2014, 03:20 PM
An honorable member of the Coffee Shop Has Just Posted the Following:

Japan was mired in deflation in the last 2 decades, till abenomic took place and started easing. Read that inflation is rising, but disposable income is shrinking.

Which is the lesser evil between the two? Or have all been misled, that deflation is better after all as compared to inflation.

My understanding is that if inflation is at 2% per year, money will be smaller by 20% in ten years time or am I wrong with this assumption.


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