[Moonman62]

Nonsense. Examine the hottest regions of economic growth, such as LA out in California. Notice that their real estate is not going down in price (the definition of deflation).

Price movements due to supply and demand in a market are neither inflation nor deflation. For instance, if the money supply is held constant and the prices for houses in California go up, then the prices for something else in the economy must go down to balance it out.

I'll repeat. Economic growth (more goods and services being produced) is deflationary.

[jpsb]

That does appear to match this rule, asumming the money supply does not go up too.

The supply of other goods goes up.

[Southack]

"I'll repeat. Economic growth (more goods and services being produced) is deflationary."

And I'll repeat: You're clueless.

Economic growth is not deflationary. Office rental prices do NOT deflate just because you have a hot economic zone. Home prices do not decline in economic boom towns (look at Vegas, please). Salaries do not decline when your company is growing.

In short, where you see economic growth you see very little deflation, save for very efficient finished products.