Inflation is a rise in the average price level. It seems to me that goods ought to cost less over time anyway. In the short run, deflation decreases consumption, but that means it must ultimately increase saving which implies stronger long term growth. Greater real wages may causes workers to consume more not less.
Inflation is a rise in the average price level.
It seems to me that goods ought to cost less over time anyway. In the short run, deflation decreases consumption, but that means it must ultimately increase saving which implies stronger long term growth. Greater real wages may causes workers to consume more not less. Join the network for free. The Freedom Network is a service of The Henry Hazlitt Foundation .