alt Hacker NewsCan you provide an example of deflation destroying an economy in history? There are many more examples of inflation destroying economies.
Replies
Roark66 • today at 2:56 PM
Wasn't the great crisis in first half of 20th century caused by deflation?
FeepingCreature • today at 1:05 PM
Japan in living memory, I believe? I'm not a history buff. Google should have many examples.
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tekla • today at 1:12 PM
Are you kidding me? Have you heard of a tiny event called the Great Depression?
The Japanese Lost Decade?
Greece Debt Crisis?
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The problems with using physical gold as currency are very well known. When population would increase, or when someone would hoard it, it would cause deflation. Likewise, when a new deposit of gold was found, it would cause inflation.
This is, in part, why there were expeditions to find gold.