In ANY economy, whether the money value is stable, inflationary or deflationary, the business that is going to be most successful is the one that is best able to please it's customers and is best able to predict the future.
Look, I'm not sure what inconsistency you think you're trying to catch me on. Maybe you think that because I have suggested that the FED's inflationary policies create booms that lead to busts, that I'm therefore an advocate of deflation? That's not the case.
The way I see it a STABLE money value is the best for any economy. It makes it easiest for everybody in the economy to make judgments about the future. Businesses are better able to predict input costs. Consumers are better able to predict the future value of money saved, and so on.
Both deflation and inflation make predicting more difficult, unless the rates are consistent from period to period, which they never are. The more volatile the inflation or deflation, the more difficult the predicting.
And I'm not suggesting that an economy without a central bank is going to bring a perfectly stable money value or any sort of utopia either. If it were gold, for instance, we would expect to see additional gold enter the money supply from mining. But I'd rather have that, than a central bank, subject to political persuasion and under the control of a handful of central planners, deciding what the money supply will be. I don't doubt that they have the best interest of the public at heart. They just don't have enough information to get it right... "it" being the "right" amount of money to maximize sustainable economic growth. They will inevitably make mistakes, and we are now living with the consequences. They will inevitably inflate too much, which we can see by looking at the history of our FED. It's too easy for central banks to inflate.
What do you hope we'll get?
Sound money, the volume of which can't be adjusted with computer programs or a printing press.
Proponents of a gold standard are advocates of deflation.
The way I see it a STABLE money value is the best for any economy.
Stable money is a great idea.
Both deflation and inflation make predicting more difficult, unless the rates are consistent from period to period, which they never are. The more volatile the inflation or deflation, the more difficult the predicting.
Careful, that's two agreements in a row!
And I'm not suggesting that an economy without a central bank is going to bring a perfectly stable money value or any sort of utopia either.
Three!
If it were gold, for instance, we would expect to see additional gold enter the money supply from mining.
Yes, but not enough.
Sound money, the volume of which can't be adjusted with computer programs or a printing press.
Do you have a mortgage? You just adjusted the volume of money.