Monetary stability that will lead to long term, constant deflation in prices. You think that'd be a good thing?
I think a drop in prices is a very good thing!
And it means that your money is worth more.
And you can buy more things with less money or you can save more for investment, which is the key to the capitalist system.
[ Deflation is a correction of a previous inflation. ]
You think deflation is good? No big deal?
I think it is necessary if you are inflating, and more then that it is inevitable.
[ With a Gold standard you remove the Government's ability to inflate and cause the 'boom and bust' cycle. ]
Long term deflation, another depression. Great idea.
No, it prevents depressions, inflation is one of the causes of depressions.
[ Keynes is dead! ]
So is the gold standard!
Only if people want capitalism to die.
Who'd want to invest to expand their factory if the price of their product would be guaranteed to drop every year? Who'd want to buy a house if it was going to get cheaper year after year after year?
No, it prevents depressions,
Deflation prevents depressions? That's funny. So no negative side effects to long term deflation? How did Japan do with 15 years of mild deflation?