/biz/ - Business & Finance

>>157250
>It can, just the way inflation can. You just have to print money of smaller nominal value.
Ok, I can see that, so the Government (or issuer of money) starts using decimal points in the currency. but if it gets too ridiculous, the people who have money left over from pre-deflation times will have an absurd amount of purchasing power... There comes a point where a person will choose to use that purchasing power, which will in turn start stimulating the economy again... And them dropping that money back into circulation will curb or stop deflation by increasing the money supply... So, I'm afraid I disagree, I don't think it can actually last forever. Hell, think about all the pennies laying around... Imagine, it would be like a new gold rush! People would actually start working to find loose change! haha - but yeah I don't think it could really get that bad, that's like hyper-deflation (which I've never heard anyone talk about)... Which brings up an interested question: there are historical accounts of hyper-inflation happening, but has a hyper-deflation event ever occurred?

>Those have the biggest deficits, and would loose big time on a deflation, which is why it isn't happening.
Again this is treading into /pol/ territory, but isn't that evidence of incompetency/corruption? Doesn't that mean that these institutions should (and probably eventually will) fail? I can see how hyper-deflation would be incredibly detrimental to anyone holding a substantial amount of debt... But don't debt holders still stand to lose in the event of hyper-inflation? Even though their debts are essentially valueless in this scenario, so is their money, so how does that effect them in the long run?

Thanks for helping me come to a better understanding btw.