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Dimpy Handa
Peter Schiff makes the argument that despite all those Central Bank jitters about the possibility of deflation following the short term and how it will be combated, deflation would be a good thing.
Schiff's sentiment is atypical within mainstream economics but typical within the Austrian School. Non-Austrians regard deflation as a bad thing because of its association with the Great Depression. Austrians accuse mainstream economists of confusing the effect with the cause. It is not that falling prices cause or worsen depressions, but falling prices result from depressions as reduced demand result in lower prices for people who are financially struggling.
Schiff's sentiment is atypical within mainstream economics but typical within the Austrian School. Non-Austrians regard deflation as a bad thing because of its association with the Great Depression. Austrians accuse mainstream economists of confusing the effect with the cause. It is not that falling prices cause or worsen depressions, but falling prices result from depressions as reduced demand result in lower prices for people who are financially struggling.