[Wyatt's Torch]

Deflation is far worse because of what it does on the asset value side and the result of that. When you are levered you are paying for that asset in current dollars when the value of that asset is declining. It leads to loans going under water. Creditors calling loans. Defaults. etc. Then it's much harder to sell assets when people expect the price to fall. the overall price level of everything falls including nominal wages. That's why it is often referred to a "deflationary spiral" or some call it a "death spiral". Look at Japan and what has happened to them over the last 20 years. Inflation is much easier to deal with.

Here's a good essay by noted supply sider Jude Wanniski called the Deflation Monster

The deflationary spiral:

[no-to-illegals]

Does not inflation eventually cause goods and services to create a similar cycle?

[no-to-illegals]

my apology ... question should read ... Does not Inflation eventually cause goods and services prices to create a similar cycle if not identical cycle as Deflation?

[Thunder90]

The problem is that you are getting heavy inflation in key sectors that affect everyone (energy, food, other consumables, and other necessities). The only deflation you see is in the housing market and durable goods that are not necessities.

[1010RD]

Have you read Wanniski’s The Way the World Works?