[wonkowasright]

The belief that deflation -- which means the purchasing power of the dollar is increasing -- causes great harm to the economy is false.

Deflation becomes a problem when an economy is heavily in debt and cannot use inflation to reduce its debt. Those periods highlighted in the article predate our heavy indebtedness.

Now as to why we have become indebted..... fix that first then lets tackle the inflation monster second.

[BfloGuy]

Now as to why we have become indebted..... fix that first then lets tackle the inflation monster second.

But we have become over-indebted because the Fed has fixed the price of interest too low. It has done that by inflating the currency. The two are one and the same.

You can't just fix one and then worry about the other later.