Quote:
Originally Posted by macker
Debt-laden governments encourage higher inflation, as that makes paying back what they owe easier. The higher the inflation the easier it is to pay back debts because revenue will be pushed up by the higher inflation while the amount owed stays the same. Monetizing debts = inflation.
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Yup, that's why you don't let government set monetary policy.
Quote:
Originally Posted by Flame Of Liberty
Are complaining about deflation in the technology (computers, phones) industry? I hope you also feel bad for making tech industry crash by buying the same device today cheaper than it cost few months ago, but surprise surprise it seems to be doing just fine?
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Technology is kind of a special case. IIRC, inflation is calculated using equivalents (i.e. high end computer last years ago vs. different high end computer today) for precisely this reason.